Search and Non-Wage Job Characteristics

Abstract

This paper quantifies the importance of non-wage job characteristics to workers by estimating a structural on-the-job search model. The model generalizes the standard search framework by allowing workers to search for jobs based on both wages and job-specific non-wage utility flows. Within the structure of the search model, data on accepted wages and wage changes at job transitions identify the importance of non-wage utility through revealed preference. The estimates reveal that utility from non-wage job characteristics plays an important role in determining job mobility, the value of jobs to workers, and the gains from job search.

Keywords: job search, non-wage job characteristics, wage growth, revealed preference, compensating differentials

JEL Classification: D1, D9, J4, J6