Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/267334 
Year of Publication: 
2022
Series/Report no.: 
CESifo Working Paper No. 10102
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Work-related stress has reportedly increased over time. Using worker-level survey data, we build a measure of work pressure strongly associated with adverse health outcomes. In line with theories of compensating differentials, work pressure comes with a sizable earnings premium, even within narrowly defined occupations. As expected, we find no premium among civil servants who face strong labor market frictions. In complementary stated-choice experiments, we uncover a substantial willingness-to-pay to avoid work pressure. Our evidence is consistent with workers sorting into high- and low-pressure jobs. Differences in the prevalence and valuation of work pressure explain a substantial share of wage inequality.
Subjects: 
work pressure
compensating differentials
working conditions
wage inequality
health
JEL: 
I10
I31
J20
J31
J32
J81
M52
Document Type: 
Working Paper
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