publication . Article . 1998

Hedonic Wages and Labor Market Search

Hwang, H. -S; Mortensen, D. T.; W. Robert Reed;
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  • Published: 01 Jan 1998 Journal: Journal of Labor Economics, volume 16, pages 815-847 (issn: 0734-306X, eissn: 1537-5307, Copyright policy)
  • Publisher: University of Chicago Press
Abstract
This article investigates the consequences of labor-market search for the theory of hedonic wages. The authors find that the introduction of search has surprising consequences for the theory of hedonic wages. In particular, they demonstrate that the equilibrium distribution of wage and nonwage amenity bundles generally bears little resemblance to workers' underlying preferences. A consequence of this analysis is that estimates of workers' marginal willingness to pay, derived from the conventional hedonic wage methodology, are biased. In addition, the authors demonstrate that search generates differences between firm-level and employee-level data that can cause s...
Subjects
free text keywords: Willingness to pay, Labour economics, Amenity, Economics, Efficiency wage, Wage, media_common.quotation_subject, media_common
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publication . Article . 1998

Hedonic Wages and Labor Market Search

Hwang, H. -S; Mortensen, D. T.; W. Robert Reed;