Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/263772 
Authors: 
Year of Publication: 
2022
Series/Report no.: 
CESifo Working Paper No. 9842
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Do firms that pay more offer better amenities, or does the greater pay compensate for worse amenities? Using matched U.S. employee-employer data, this paper estimates the joint distribution of wages, amenities, and job satisfaction across firms. Fifty amenities are captured applying topic modeling to workers' free-response descriptions of their jobs. Three main findings emerge. First, higher-paying firms offer better amenities. Second, employees value amenities: one-third have a more pronounced effect on satisfaction than pay. Third, since workers are willing to pay for satisfaction and because the covariance between amenities and wages is sufficiently high, amenities widen compensation dispersion across firms.
Subjects: 
job amenities
job satisfaction
inequality
JEL: 
J01
J32
M50
Document Type: 
Working Paper
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