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Sorting and wage premiums in immoral work

Author

Listed:
  • Florian H. Schneider

    (Department of Economics, University of Copenhagen)

  • Fanny Brun

    (Independent researcher)

  • Roberto A. Weber

    (Department of Economics, University of Zurich)

Abstract

We use surveys, laboratory experiments and administrative data to study how heterogeneity in the perceived immorality of work and in workers’ aversion to acting immorally impact labor market outcomes. Immoral work is associated with higher wages, both in administrative data and in causal experimental evidence. Individuals more willing to engage in immoral conduct find employment in firms and industries perceived as immoral less aversive and have higher employment rates in immoral work in the laboratory. These phenomena appear to be driven by impure social motives, reflecting a desire not to be involved with immoral work, rather than by consequentialist concerns.

Suggested Citation

  • Florian H. Schneider & Fanny Brun & Roberto A. Weber, 2024. "Sorting and wage premiums in immoral work," CEBI working paper series 24-12, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    • Handle: RePEc:kud:kucebi:2412
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    File URL: https://www.econ.ku.dk/cebi/publikationer/working-papers/CEBI_WP_12-24.pdf
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    More about this item

    Keywords

    Wage premium; immoral behavior; impure social preferences; sorting; experiments;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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