| Conclusions derived from the development of a model of compensating wage differentials are tested against empirical results derived from regression estimations of hedonic wage equations. The theoretical arguments are: if workers in jobs with higher levels of an employment characteristic are averse to it, other things equal, these jobs will pay higher wages; the higher the probability of a wage loss and the longer the expected duration of the loss the higher the wages, other things equal; workers that are exposed to more of a disagreeable employment characteristic receive lower compensating wage differentials (but, of course, higher wages) than workers that are exposed to less of these characteristics, other things equal; females, because of their allocation of more effort and time to the household, in general, avoid jobs that require a lot of effort and other bothersome working conditions and prefer seasonal employments, thus receiving higher compensating wage differentials than males, on the average, for these working conditions, and wage discounts for employment seasonality.;Based mainly on worker reported cross sectional data, hedonic wage equations are estimated for the total sample of workers, by three occupation groups and by sex. |
