Using twins to resolve the twin problem of having a bad job and a low wage

Petri Böckerman (), Pekka Ilmakunnas and Jari Vainiomäki ()

No 294, Working Papers from Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE

Abstract: We use data on twins matched to register-based information on earnings to examine the long-standing puzzle of non-existent compensating wage differentials. The use of twin data allows us to remove otherwise unobserved productivity differences that were the prominent reason for estimation bias in the earlier studies. Using twin differences we find evidence for positive compensation of adverse working conditions in the labor market.

Keywords: Compensating differentials; Earnings; Unobserved ability; Productivity (search for similar items in EconPapers)
JEL-codes: J28 J31 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2015-11-14
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https://labore.fi/wp-content/uploads/2015/11/Tyopapereita-294.pdf First version, 2015 (application/pdf)

Related works:
Journal Article: Using Twins to Resolve the Twin Problem of Having a Bad Job and a Low Wage (2018)
Working Paper: Using Twins to Resolve the Twin Problem of Having a Bad Job and a Low Wage (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:pst:wpaper:294

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