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Journal of Labor Economics Vol. 26 No. 1 2008

Do Wages Compensate for Anticipated Working Time Restrictions? Evidence from Seasonal Employment in Austria

Emilia Del Bono; Andrea Weber1,2

1 Institut für Höhere Studien - Institute for Advanced Studies (IHS) · 2 University of California, Berkeley

open access

Abstract

This article investigates the existence of compensating wage differentials across seasonal and long‐term jobs that arise due to anticipated working time restrictions. Using longitudinal information from the Austrian administrative records, we derive a definition of seasonality based on observed regularities in employment patterns. As wages change across seasonal and long‐term jobs for the same individual over time, we can control for individual‐specific effects and use variation in the starting month of seasonal jobs as an exogenous predictor of anticipated unemployment. We find that employers pay, on average, a positive wage differential of about 11% for seasonal jobs.

DOI
10.1086/522070
Volume
26
Issue
1
Pages
181-221
Language
en
Sources
openalex crossref

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