Pensions and Wages: An Hedonic Price Theory Approach

Montgomery, Edward; Shaw, Kathryn; Benedict, Mary Ellen

doi:10.3386/w3458

Cited by 22 publications

(15 citation statements)

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“…4 The bulk of the research has used US data. The sources of survey data that incorporate working conditions measures include the Michigan Quality of Employment Survey (Duncan, 1976;Leigh, 1981;Ehrenberg and Schumann, 1984;Leigh and Folsom, 1984;Filer, 1985), the Panel Study of Income Dynamics (Duncan, 1976); the Institute for Social Research's Survey of Working Conditions (Fairris, 1992), the National Longitudinal Survey (Viscusi, 1978;Brown, 1980;Low and Villegas, 1987), the Current Population Survey (Olson, 1981), the Survey of Consumer Finances (Montgomery, Shaw and Benedict, 1992). Note that some studies use more than one available data set.…”

Section: Resultsmentioning

confidence: 99%

The Determinants of Blue CollarWage Rates: An Analysis of a DataSet Incorporating Observed Job Characteristics

Smith

Masi

Lemay

1997

Labour

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There is wide agreement that one of the major problems in the estimation of wage equations, and in testing theories of wages, is the quality of the data available. In particular, the data used in almost all studies involve indirect or unsatisfactory measures of a variety of relevant factors, including working conditions. In this paper we exploit an unusual data set that includes measures of characteristics of jobs generated by observation (rather than self report, or through inference from the Dictionary of Occupational Titles). With these data we estimate a wage equation in which compensating differentials play a significant role in wage determination and, once working conditions and other characteristics are effectively controlled, all but one measure of previous labour market experience had no effect on the wage rate.

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Section: Resultsmentioning

confidence: 99%

The Determinants of Blue CollarWage Rates: An Analysis of a DataSet Incorporating Observed Job Characteristics

Smith

Masi

Lemay

1997

Labour

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“…Profit maximising firms will endeavour to recruit labour up to the point at which the marginal cost of employment equals the marginal revenue from employment. Under competition and assuming no differential effects on productivity, firms will be indifferent between wage and pension benefits ceteris paribus such that that the isocost line illustrated in Figure 1 would have a slope of -1 [see Smith (1981) and Montgomery et al (1992)]. The equilibrium market locus is then the function tracing out the tangencies between the individuals' indifference curves and the The implication of all this is that the sign of a non-wage benefit variable in a correctly specified wage regression, after controlling for qualification and other characteristics that affect wages, should turn be negative.…”

Section: Theoretical Underpinningmentioning

confidence: 99%

Work now, pay later? An empirical analysis of the pension–pay trade off

Haynes

Sessions

2013

Economic Modelling

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We investigate the potential compensating differential between wages and pensions on a sample of British workers. Random effects panel regressions are run applying the Schiller and Weiss (1980) methodology to test whether a pension-wage compensating differential exists. Using data from British Household Panel Survey (BHPS) and derived prospective pension variables, calculated by the Institute for Fiscal Studies (IFS), the regression results do not support evidence for a trade off. Further analysis finds no significant differences in results between public and private sector workers, even after controlling for sample selection bias wage.

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“… Most studies focus on health insurance or on only one benefit. Montgomery, Shaw, and Benedict () find a negative trade‐off between wages and pension level in the contractual model they estimate. Baughman, DiNardi, and Holtz‐Eakin () find some evidence of wage reduction associated with the offering of family‐friendly practices.…”

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confidence: 91%

The Wage–Health Insurance Trade‐off and Worker Selection: Evidence From the Medical Expenditure Panel Survey 1997 to 2006

Lluis

Abraham

2013

Industrial Relations

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Key provisions within healthcare reform will likely further increase the cost of employer-sponsored insurance. Theory suggests that workers pay for their health insurance through a wage offset. We investigate this issue using data from the Medical Expenditure Panel Survey. GMM estimates aimed at correcting for endogenous worker mobility reveal evidence of a trade-off for workers who are offered health insurance as the only fringe benefit. On the other hand, employees in establishments with a more comprehensive set of benefits enjoy higher wages relative to employees in establishments that offer no benefits. Health also affects the wage-health insurance trade-off.

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Pensions and Wages: An Hedonic Price Theory Approach

Cited by 22 publications

References 0 publications

The Determinants of Blue CollarWage Rates: An Analysis of a DataSet Incorporating Observed Job Characteristics

The Determinants of Blue CollarWage Rates: An Analysis of a DataSet Incorporating Observed Job Characteristics

Work now, pay later? An empirical analysis of the pension–pay trade off

The Wage–Health Insurance Trade‐off and Worker Selection: Evidence From the Medical Expenditure Panel Survey 1997 to 2006

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