Using Twins to Resolve the Twin Problem of Having a Bad Job and a Low Wage
: Bockerman P, Ilmakunnas P, Vainiomaki J
Publisher: WILEY
: 2018
: Manchester School
: MANCHESTER SCHOOL
: MANCH SCH
: 86
: 2
: 155
: 177
: 23
: 1463-6786
DOI: https://doi.org/10.1111/manc.12178
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.