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Estimating Compensating Wage Differentials with Endogenous Job Mobility

dc.contributor.authorLavetti, Kurt
dc.contributor.authorSchmutte, Ian M.
dc.date.accessioned2020-12-06T22:17:31Z
dc.date.available2020-12-06T22:17:31Z
dc.date.issued2016-08-12
dc.description.abstractWe demonstrate a strategy for using matched employer-employee data to correct endogenous job mobility bias when estimating compensating wage differentials. Applied to fatality rates in the census of formal-sector jobs in Brazil between 2003-2010, we show why common approaches to eliminating ability bias can greatly amplify endogenous job mobility bias. By extending the search-theoretic hedonic wage framework, we establish conditions necessary to interpret our estimates as preferences. We present empirical analyses supporting the predictions of the model and identifying conditions, demonstrating that the standard models are misspecified, and that our proposed model eliminates latent ability and endogenous mobility biases
dc.description.legacydownloadsCDEM_vc.pdf: 846 downloads, before Oct. 1, 2020.
dc.identifier.other8999725
dc.identifier.urihttps://hdl.handle.net/1813/89097
dc.language.isoen_US
dc.relation.hasversionA more recent version of this paper can be found here: https://hdl.handle.net/1813/89102.
dc.relation.urihttps://hdl.handle.net/1813/89102
dc.subjectlabor market
dc.subjectwage differentials
dc.subjectjob mobility
dc.subjectBrazil
dc.titleEstimating Compensating Wage Differentials with Endogenous Job Mobility
local.authorAffiliationLavetti, Kurt: The Ohio State University
local.authorAffiliationSchmutte, Ian M.: University of Georgia

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