Other publication
Using Twins to Resolve the Twin Problem of Having a Bad Job and a Low Wage
Authors: Bockerman P, Ilmakunnas P, Vainiomaki J
Publisher: WILEY
Publication year: 2018
Journal: Manchester School
Journal name in source: MANCHESTER SCHOOL
Journal acronym: MANCH SCH
Volume: 86
Issue: 2
First page : 155
Last page: 177
Number of pages: 23
ISSN: 1463-6786
DOI: https://doi.org/10.1111/manc.12178
Abstract
We use twin data linked to register-based information on earnings to examine the long-standing puzzle of nonexistent compensating wage differentials. The use of twin data with a panel dimension allows us to alleviate the impact of otherwise unobserved productivity differences that have been the prominent reason for estimation bias in prior studies. Using a twin design, we find some evidence for positive compensation of adverse working conditions in the labor market.
We use twin data linked to register-based information on earnings to examine the long-standing puzzle of nonexistent compensating wage differentials. The use of twin data with a panel dimension allows us to alleviate the impact of otherwise unobserved productivity differences that have been the prominent reason for estimation bias in prior studies. Using a twin design, we find some evidence for positive compensation of adverse working conditions in the labor market.