Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/104679
Authors: 
Böckerman, Petri
Ilmakunnas, Pekka
Vainiomäki, Jari
Year of Publication: 
2014
Series/Report no.: 
IZA Discussion Papers 8557
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.
Subjects: 
compensating differentials
earnings
unobserved ability
productivity
JEL: 
J28
J31
Document Type: 
Working Paper

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