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The Sustainability Wage Gap

Authors: Kreuger, Philipp; Metzger, Daniel; Wu, Jiaxin;

The Sustainability Wage Gap

Abstract

Using administrative employer-employee matched data, we provide evidence that workers earn substantially lower wages in more sustainable firms. Examining both cross-sectional and time-series heterogeneity, we find that the wage gap is larger for high-skilled workers and increasing over time. We hypothesise that this Sustainability Wage Gap arises because workers with preferences for sustainability accept lower wages to work in more environmentally sustainable firms. Using a battery of additional tests, we argue that our results are difficult to reconcile with many alternative interpretations suggested in prior research such as a better work-life balance or better career opportunities.

Country
Sweden
Keywords

Career opportunities, Work-life balance, J24, Q56, Allocation of talent, Sustainability, ESG, Preferences, Human capital, G32, J31, CSR, Wage differentials

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    popularity
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    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
13
Top 10%
Average
Top 10%
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