equilibrium relationship between wages and job characteristics arising from the interaction of workers and firms. The regression model should be able to place values. ![]() It is done to determine the contributory value of each characteristic separately through regression analysis. collection of wage and job characteristics that yield the same level of profit for a firm. The hedonic regression method is a regression technique used to determine the value of a good, service, or asset by fractionating the product into constituent parts or characteristics. Firms which spend funds to reduce a disamenity (or increase an amenity), must reduce the wage rate in order to keep profits constant. collection of wage and job characteristics that make an individual indifferent across various jobs. Firms that pay lower wages, but offer more amenities, have higher than average profits. It breaks down the good or item being researched into its characteristics, and obtains estimates of the monetary value contribution of each characteristic. The 1983 survey of Consumer Finances is used to match detailed information on pension plans to detailed personal characteristics of a random sample of the population. In economics, hedonic regression is a revealed preference method for estimating the monetary value of the characteristics of a good. Supplementary materials for this article are available online. The hedonic wage function is positively sloped when wages are related to a nonwage disamenity (e.g. This paper examines whether a tradeoff exists between the level of pension benefits and wages for comparably skilled workers. Product Details : Genre: Business & Economics: Author: Thomas J. A shortage of workers in high-z establishments. eBook Download BOOK EXCERPT: Hedonic Wage Equilibrium examines empirically and theoretically the properties of the equilibrium wage function. I find that workers’ marginal aversion to fatal risk falls as risk levels rise, which suggests complementarities in the benefits of public safety policies. The hedonic wage function equilibrates the supply and demand for labor along the entire job attribute spectrum. The estimates also remove the confounding effects of endogenous job mobility and dynamic labor market search, narrowing a conceptual gap between search-based hedonic wage theory and its empirical applications. I show that estimation strategies common in the literature produce biased estimates in this setting, and decompose the bias components due to latent worker, establishment, and job-match heterogeneity. The unique setting exploits intertemporal variation in fatality rates and wages within worker-vessel pairs caused by a combination of weather patterns and policy changes, allowing identification of parameters and biases that it has only been possible to speculate about in more general settings. I find that workers marginal aversion to fatal risk. ![]() ![]() I use longitudinal survey data from commercial fishing deckhands in the Alaskan Bering Sea to provide new insights on empirical methods commonly used to estimate compensating wage differentials and the value of statistical life (VSL). narrowing a conceptual gap between search-based hedonic wage theory and its empirical applications.
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