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Title: Preference, Comparative Advantage, and Compensating Wage Differentials for Job Routinization
Authors: Quintana-Domeque, Climent
Keywords: wage diffententials
job attributes
routine tasks
Issue Date: 1-May-2008
Series/Report no.: Working Papers (Princeton University. Industrial Relations Section) ; 525
Abstract: I attempt to explain why compensating differentials for job disamenities are difficult to observe. I focus on the match between workers’ preferences for routine jobs and the variability in tasks associated with the job. Using data from the Wisconsin Longitudinal Study, I find that mismatched workers report lower job satisfaction and earn lower wages. Both male and female workers in routinized jobs earn, on average, 12% less than their counterparts in non-routinized jobs. Once preferences and mismatch are accounted for, this difference decreases to 8% for men and 5% for women. Accounting for mismatch is important when analyzing compensating differentials.
Appears in Collections:IRS Working Papers

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