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High-Pressure, High-Paying Jobs?

Author

Listed:
  • Markus Nagler
  • Johannes Rincke
  • Erwin Winkler

Abstract

Work-related stress has reportedly increased over time. Using worker-level survey data, we build a measure of work pressure strongly associated with adverse health outcomes. In line with theories of compensating differentials, work pressure comes with a sizable earnings premium, even within narrowly defined occupations. As expected, we find no premium among civil servants who face strong labor market frictions. In complementary stated-choice experiments, we uncover a substantial willingness-to-pay to avoid work pressure. Our evidence is consistent with workers sorting into high- and low-pressure jobs. Differences in the prevalence and valuation of work pressure explain a substantial share of wage inequality.

Suggested Citation

  • Markus Nagler & Johannes Rincke & Erwin Winkler, 2022. "High-Pressure, High-Paying Jobs?," CESifo Working Paper Series 10102, CESifo.
    • Handle: RePEc:ces:ceswps:_10102
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp10102.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    work pressure; compensating differentials; working conditions; wage inequality; health;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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