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A Note on the Estimation of Job Amenities and Labor Productivity

Author

Listed:
  • Arnaud Dupuy

    (CREA - Center for Research in Economic Analysis - uni.lu - Université du Luxembourg = University of Luxembourg = Universität Luxemburg, uni.lu - Université du Luxembourg = University of Luxembourg = Universität Luxemburg, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics)

  • Alfred Galichon

    (NYU - New York University [New York] - NYU - NYU System, ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper introduces a maximum likelihood estimator of the value of job amenities and labor productivity in a single matching market based on the observation of equilibrium matches and wages. The estimation procedure simultaneously fits both the matching patterns and the wage curve. While our estimator is suited for a wide range of assignment problems, we provide an application to the estimation of the Value of a Statistical Life using compensating wage differentials for the risk of fatal injury on the job. Using US data for 2017, we estimate the Value of Statistical Life at $6.3 million ($2017).

Suggested Citation

  • Arnaud Dupuy & Alfred Galichon, 2022. "A Note on the Estimation of Job Amenities and Labor Productivity," SciencePo Working papers Main hal-03893167, HAL.
    • Handle: RePEc:hal:spmain:hal-03893167
    DOI: 10.3982/QE928
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03893167v1
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    References listed on IDEAS

    as
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    Cited by:

    1. Arnaud Dupuy & John Kennes & Ran Sun Lyng, 2023. "Job Amenities in the Market for CEOs," Economics Working Papers 2023-08, Department of Economics and Business Economics, Aarhus University.

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    More about this item

    Keywords

    Matching; Observed transfers; Structural estimation; Value of statistical life;
    All these keywords.

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