← Search

The Review of Economics and Statistics 2024

Sorting and Wage Premiums in Immoral Work

Florian Schneider1; Fanny Brun2; Roberto A. Weber3

1 Department of Economics and Center for Economic Behavior and Inequality (CEBI), University of Copenhagen, Copenhagen, Denmark [email protected] · 2 Independent Researcher [email protected] · 3 Department of Economics, University of Zurich, Zurich, Switzerland [email protected]

Abstract

We use surveys, laboratory experiments and administrative data to study how heterogeneity in the perceived immorality of work and in workers' aversion to acting immorally impact labor market outcomes. Immoral work is associated with higher wages, both in administrative data and in causal experimental evidence. Individuals more willing to engage in immoral conduct find employment in firms and industries perceived as immoral less aversive and have higher employment rates in immoral work in the laboratory. These phenomena appear to be driven by impure social motives, reflecting a desire not to be involved with immoral work, rather than by consequentialist concerns.

DOI
10.1162/rest_a_01536
Pages
1-46
Language
en
Sources
crossref openalex

Cite