Wages or Fringes?: Some Evidence on Trade-Offs and Sorting

Tor Eriksson; Nicolai Kristensen

Wages or Fringes? Some Evidence on Trade-Offs and Sorting

Tor Eriksson, Nicolai Kristensen

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaper › Journal article › Research › peer-review

57 Citations (Scopus)

Abstract

The two key predictions of hedonic wage theory are that there is a trade-off between wages and nonmonetary rewards and that the latter can be used as a sorting device by firms to attract and retain the kind of employees they desire. We use the vignettes method to estimate individuals' willingness-to-pay for fringe benefits and job amenities. We find negative wage-fringe trade-offs, considerable heterogeneity in willingness-to-pay for fringe benefits, and signs of sorting.

Original language	English
Journal	Journal of Labor Economics
Volume	32
Issue	4
Pages (from-to)	899-928
Number of pages	31
ISSN	0734-306X
Publication status	Published - 2014

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title = "Wages or Fringes?: Some Evidence on Trade-Offs and Sorting",

abstract = "The two key predictions of hedonic wage theory are that there is a trade-off between wages and nonmonetary rewards and that the latter can be used as a sorting device by firms to attract and retain the kind of employees they desire. We use the vignettes method to estimate individuals' willingness-to-pay for fringe benefits and job amenities. We find negative wage-fringe trade-offs, considerable heterogeneity in willingness-to-pay for fringe benefits, and signs of sorting.",

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AB - The two key predictions of hedonic wage theory are that there is a trade-off between wages and nonmonetary rewards and that the latter can be used as a sorting device by firms to attract and retain the kind of employees they desire. We use the vignettes method to estimate individuals' willingness-to-pay for fringe benefits and job amenities. We find negative wage-fringe trade-offs, considerable heterogeneity in willingness-to-pay for fringe benefits, and signs of sorting.

M3 - Journal article

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EP - 928

JO - Journal of Labor Economics

JF - Journal of Labor Economics

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ER -

Wages or Fringes? Some Evidence on Trade-Offs and Sorting

Abstract

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