Journal of Labor Economics Vol. 32 No. 4 2014
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.
- DOI
- 10.1086/676662
- Volume
- 32
- Issue
- 4
- Pages
- 899-928
- Language
- en
- Sources
- openalex crossref