Job complexity and wages

H. van Ophem, J. Hartog, W. P. M. Vijverberg

Research output: Contribution to journalArticlepeer-review

12 Citations (Scopus)

Abstract

We estimate a model inspired by Tinbergen's 1956 article, with utility maximizing job choice, where utility depends on job complexity and the wage rate, and where the equilibrium wage structure provides for compensation for more complex jobs. It involves maximum likelihood estimation of a two-equation model with heteroscedastic errors, in which one of the equations is an ordered probit. In the wage functions, individual characteristics and job level interact (comparative advantage). Females face a steeper wage slope across job levels. Individuals' marginal rate of substitution between wage and job complexity is increasing both in job complexity and wages. -Authors
Original languageEnglish
Pages (from-to)853-872
Number of pages20
JournalInternational Economic Review
Volume34
Issue number4
DOIs
Publication statusPublished - 1993
Externally publishedYes

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