Non-Wage Job Values and Implications for Inequality

The Changing Value of Employment and Its Implications

“…For non-college workers we find negative covariations, with a trend towards lower covariances among men. The positive and increasing covariances for college men are in line with findings in Lehmann (2022), which estimates wage and nonwage compensation for a sample of male workers who experience job-to-job transitions.…”

“…For non-college workers we find negative covariations and a trend towards lower covariances among men. The positive and increasing covariances for college men are in line with the findings of Lehmann (2022), which restricts attention to male workers who experience job-to-job transitions. Transitions that bypass unemployment tend to over-sample educated men, which is consistent with our findings.…”

“…This measure fully accounts for unobserved idiosyncratic components of each marginal worker's valuation. The applied literature often gauges the magnitude of compensating differentials from estimates of the covariance between wage and non-wage components of job values (Lehmann, 2022). While informative these measures are based on a sample that includes both marginal and inframarginal workers and do not include the idiosyncratic components of the workers' valuations.…”

“…Lamadon et al (2022) estimate that workers are, on average, willing to pay over 1 10 of their wages to stay in their current jobs. Lehmann (2022) argues that a positive correlation between wages and non-wage amenities exacerbated inequality in the Austrian labor market between 1996 and 2011.…”

“…Empirical studies often define compensating differentials as the covariance between wage and non-wage components (seeLehmann, 2022). In Appendix H, we revisit our findings using this alternative definition.…”