Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/193219 
Year of Publication: 
2018
Series/Report no.: 
IZA Discussion Papers No. 11925
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper documents variation in working conditions among workers in the United States, presents new estimates of how workers value these conditions, and assesses the impact of working conditions on estimates of the wage structure and inequality. We use evidence from a series of stated preference experiments to estimate workers' willingness-to-pay for a broad set of job characteristics, which we validate with actual job choices. We find that working conditions vary substantially across workers, play a significant role in job choice decisions, and are central components of the compensation received by workers. Preferences vary by demographic groups and throughout the wage distribution. We find that accounting for differences in preferences for working conditions often exacerbates wage differentials by race, age, and education, and intensifies measures of wage inequality.
Subjects: 
working conditions
wages
compensating differentials
stated preferences
JEL: 
J13
Document Type: 
Working Paper

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