IDEAS home Printed from https://ideas.repec.org/a/bla/labour/v21y2007i4-5p713-733.html
   My bibliography  Save this article

Do Satisfactory Working Conditions Contribute to Explaining Earning Differentials in Italy? A Panel Data Approach

Author

Listed:
  • Ambra Poggi

Abstract

. The aim of the present paper is to analyse the wage differentials associated with non‐pecuniary working conditions using objective and subjective data. In some situations a worker can be compensated for unsatisfactory working conditions via a higher wage; conversely, in the presence of segmented labor markets, higher wages can be associated with favorable non‐monetary working conditions. Moreover, a positive correlation between wages and satisfactory working conditions exists when there is efficient union bargaining regarding both wages and working conditions. In the present study, we estimate a wage equation with variables that capture workers’ subjective views regarding their current non‐pecuniary working conditions, allowing for unobserved individual heterogeneity. Our results reveal a positive wage differential associated with satisfactory non‐pecuniary working conditions. This result supports the segmentation labor market hypothesis. The focus of the study is on Italian workers, but we compare the core results the those obtained for other Mediterranean countries.

Suggested Citation

  • Ambra Poggi, 2007. "Do Satisfactory Working Conditions Contribute to Explaining Earning Differentials in Italy? A Panel Data Approach," LABOUR, CEIS, vol. 21(4‐5), pages 713-733, December.
    • Handle: RePEc:bla:labour:v:21:y:2007:i:4-5:p:713-733
    DOI: 10.1111/j.1467-9914.2007.00394.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-9914.2007.00394.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-9914.2007.00394.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2003. "Instrumental variables and GMM: Estimation and testing," Stata Journal, StataCorp LP, vol. 3(1), pages 1-31, March.
    2. George A. Akerlof & Janet L. Yellen, 1990. "The Fair Wage-Effort Hypothesis and Unemployment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(2), pages 255-283.
    3. Pierre Cahuc & Hélène Zajdela, 1991. "Comment expliquer le dualisme du marché du travail à partir de comportements rationnels ?," Revue Économique, Programme National Persée, vol. 42(3), pages 469-492.
    4. Devicienti, Francesco & Maida, Agata & Pacelli, Lia, 2008. "The resurrection of the Italian wage curve," Economics Letters, Elsevier, vol. 98(3), pages 335-341, March.
    5. Petri Böckerman & Pekka Ilmakunnas, 2004. "Job Disamenities, Job Satisfaction and on-the-Job Search: Is There a Nexus?," Working Papers 208, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    6. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    7. Daiji Kawaguchi, 2002. "Compensating Wage Differentials among Self-Employed Workers:Evidence from Job Satisfaction Scores," ISER Discussion Paper 0568, Institute of Social and Economic Research, Osaka University.
    8. Lanfranchi, Joseph & Ohlsson, Henry & Skalli, Ali, 2002. "Compensating wage differentials and shift work preferences," Economics Letters, Elsevier, vol. 74(3), pages 393-398, February.
    9. Petri Böckerman & Pekka Ilmakunnas, 2006. "Do job disamenities raise wages or ruin job satisfaction?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 27(3), pages 290-302, April.
    10. Clark, Andrew E. & Senik, Claudia, 2006. "The (unexpected) structure of "rents" on the French and British labour markets," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(2), pages 180-196, April.
    11. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    12. Viscusi, W Kip & Aldy, Joseph E, 2003. "The Value of a Statistical Life: A Critical Review of Market Estimates throughout the World," Journal of Risk and Uncertainty, Springer, vol. 27(1), pages 5-76, August.
    13. Daniel, Christophe & Sofer, Catherine, 1998. "Bargaining, Compensating Wage Differentials, and Dualism of the Labor Market: Theory and Evidence for France," Journal of Labor Economics, University of Chicago Press, vol. 16(3), pages 546-575, July.
    14. Brown, Charles & Medoff, James, 1989. "The Employer Size-Wage Effect," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1027-1059, October.
    15. Michael French & Laura Dunlap, 1998. "Compensating wage differentials for job stress," Applied Economics, Taylor & Francis Journals, vol. 30(8), pages 1067-1075.
    16. Lanfranchi, Joseph & Ohlsson, Henry & Skalli, Ali, 2002. "Compensating wage differentials and shift work preferences," Economics Letters, Elsevier, vol. 74(3), pages 393-398, February.
    17. Elisabetta Magnani, 2001. "Market Volatility and the Structure of US Earnings," LABOUR, CEIS, vol. 15(1), pages 57-80, March.
    18. Cain, Glen G, 1976. "The Challenge of Segmented Labor Market Theories to Orthodox Theory: A Survey," Journal of Economic Literature, American Economic Association, vol. 14(4), pages 1215-1257, December.
    19. Olivier Godechot & Marc Gurgand, 2000. "Quand les salariés jugent leur salaire," Économie et Statistique, Programme National Persée, vol. 331(1), pages 3-24.
    20. repec:reg:rpubli:282 is not listed on IDEAS
    21. Charles Brown, 1980. "Equalizing Differences in the Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(1), pages 113-134.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:aer:wpaper:333 is not listed on IDEAS
    2. Smriti Sharma & Christophe Nordman, 2018. "Pecuniary returns to working conditions in Vietnam," WIDER Working Paper Series 72, World Institute for Development Economic Research (UNU-WIDER).
    3. Akshay Vij & Lynette Washington & Sally Weller & Jacob Irving & Ilke Onur, 2024. "Labour Market Preferences of Retrenched Australian Auto Industry Workers for Job Quality and Meaningful Work," The Economic Record, The Economic Society of Australia, vol. 100(329), pages 209-233, June.
    4. S. Cicognani & M. Cioni & M. Savioli, 2016. "The secret to job satisfaction is low expectations: How perceived working conditions differ from actual ones," Working Papers wp1083, Dipartimento Scienze Economiche, Universita' di Bologna.
    5. Christophe J. Nordman & Smriti Sharma, 2018. "Pecuniary returns to working conditions in Vietnam," WIDER Working Paper Series wp-2018-72, World Institute for Development Economic Research (UNU-WIDER).
    6. Bocquier, Philippe & Nordman, Christophe J. & Vescovo, Aude, 2010. "Employment Vulnerability and Earnings in Urban West Africa," World Development, Elsevier, vol. 38(9), pages 1297-1314, September.
    7. Ahmet Mutlu Akyüz & İbrahim Durmuş, 2022. "Investigation of Factors That May Affect the Commitment of Healthcare Professionals to Their Works During the COVID-19 Pandemic Period," SAGE Open, , vol. 12(2), pages 21582440221, April.
    8. Ndamsa Dickson Thomas & Baye Mendjo Francis & Epo Boniface Ngah, 2013. "Responsiveness of Private Sector Household Income to Employment Vulnerability in Cameroon," EuroEconomica, Danubius University of Galati, issue 1(32), pages 153-177, May.
    9. Simona Cicognani & Martina Cioni & Marco Savioli, 2017. "Conditions at work: how actual and expected working conditions drive perception," Working Paper series 17-17, Rimini Centre for Economic Analysis.
    10. repec:dau:papers:123456789/4294 is not listed on IDEAS
    11. Fernández, Rosa M. & Nordman, Christophe J., 2009. "Are there pecuniary compensations for working conditions?," Labour Economics, Elsevier, vol. 16(2), pages 194-207, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nikolaos Georgantzis & Efi Vasileiou, 2014. "Are Dangerous Jobs Paid Better? European Evidence," Research in Labor Economics, in: New Analyses of Worker Well-Being, volume 38, pages 163-192, Emerald Group Publishing Limited.
    2. Petri Böckerman & Pekka Ilmakunnas, 2006. "Do job disamenities raise wages or ruin job satisfaction?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 27(3), pages 290-302, April.
    3. Ndamsa Dickson Thomas & Baye Mendjo Francis & Epo Boniface Ngah, 2013. "Responsiveness of Private Sector Household Income to Employment Vulnerability in Cameroon," EuroEconomica, Danubius University of Galati, issue 1(32), pages 153-177, May.
    4. repec:dau:papers:123456789/4294 is not listed on IDEAS
    5. Fernández, Rosa M. & Nordman, Christophe J., 2009. "Are there pecuniary compensations for working conditions?," Labour Economics, Elsevier, vol. 16(2), pages 194-207, April.
    6. Bocquier, Philippe & Nordman, Christophe J. & Vescovo, Aude, 2010. "Employment Vulnerability and Earnings in Urban West Africa," World Development, Elsevier, vol. 38(9), pages 1297-1314, September.
    7. Alexandre Mas & Amanda Pallais, 2017. "Valuing Alternative Work Arrangements," American Economic Review, American Economic Association, vol. 107(12), pages 3722-3759, December.
    8. Rafael Muñoz de Bustillo & Enrique Fernández-Macías & José-Ignacio Antón & Fernando Esteve, 2011. "Measuring More than Money," Books, Edward Elgar Publishing, number 14072.
    9. Asadul Islam & Dietrich K. Fausten, 2008. "Skilled Immigration and Wages in Australia," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages 66-82, September.
    10. Doko Tchatoka, Firmin Sabro, 2012. "Specification Tests with Weak and Invalid Instruments," MPRA Paper 40185, University Library of Munich, Germany.
    11. Tadashi Sakai & Naomi Miyazato, 2014. "Who values the family-friendly aspects of a job? Evidence from the Japanese labour market," The Japanese Economic Review, Japanese Economic Association, vol. 65(3), pages 397-413, September.
    12. Doko Tchatoka, Firmin & Dufour, Jean-Marie, 2020. "Exogeneity tests, incomplete models, weak identification and non-Gaussian distributions: Invariance and finite-sample distributional theory," Journal of Econometrics, Elsevier, vol. 218(2), pages 390-418.
    13. Lea Sell & Bryan Cleal, 2011. "Job Satisfaction, Work Environment, and Rewards: Motivational Theory Revisited," LABOUR, CEIS, vol. 25(1), pages 1-23, March.
    14. Böckerman, Petri & Ilmakunnas, Pekka & Johansson, Edvard, 2011. "Job security and employee well-being: Evidence from matched survey and register data," Labour Economics, Elsevier, vol. 18(4), pages 547-554, August.
    15. Olena Nizalova, 2014. "Inequality in Total Returns to Work in Ukraine: Taking A Closer Look at Workplace (Dis)amenities," Discussion Papers 52, Kyiv School of Economics.
    16. Doko Tchatoka, Firmin, 2012. "On the Validity of Durbin-Wu-Hausman Tests for Assessing Partial Exogeneity Hypotheses with Possibly Weak Instruments," MPRA Paper 40184, University Library of Munich, Germany.
    17. Haoran He & David Neumark & Qian Weng, 2021. "Do Workers Value Flexible Jobs? A Field Experiment," Journal of Labor Economics, University of Chicago Press, vol. 39(3), pages 709-738.
    18. Kiviet, Jan F. & Pleus, Milan, 2017. "The performance of tests on endogeneity of subsets of explanatory variables scanned by simulation," Econometrics and Statistics, Elsevier, vol. 2(C), pages 1-21.
    19. Firmin Doko Tchatoka & Jean‐Marie Dufour, 2014. "Identification‐robust inference for endogeneity parameters in linear structural models," Econometrics Journal, Royal Economic Society, vol. 17(1), pages 165-187, February.
    20. Climent Quintana‐Domeque, 2011. "Preferences, Comparative Advantage, and Compensating Wage Differentials for Job Routinization," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 73(2), pages 207-229, April.
    21. Harry Patrinos & Chris Sakellariou, 2005. "Schooling and Labor Market Impacts of a Natural Policy Experiment," LABOUR, CEIS, vol. 19(4), pages 705-719, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:labour:v:21:y:2007:i:4-5:p:713-733. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/csrotit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.