Too Rich to Do the Dirty Work? Wealth Effects on the Demand for Good Jobs

46 Pages Posted: 31 Jan 2014

See all articles by Luke Haywood

Luke Haywood

German Institute for Economic Research (DIW Berlin)

Date Written: January 2014

Abstract

Jobs offer different wages and different non-monetary working conditions. This paper investigates how the demand for non-monetary aspects evolves over changing wealth levels. Wages do not perfectly compensate individuals for differential utility of jobs in a labour market with informational frictions. Changes in wealth may then affect preferences for different jobs. Willingness to pay for non-monetary aspects of jobs (measured by job satisfaction for work "in itself") is found to increase with wealth shocks. Duration models are estimated based on the reduced form of a search model. Wealth may play an important role in labour market choices.

Keywords: labor supply, wealth, job satisfaction, duration models

JEL Classification: J21, J28, J32, J64

Suggested Citation

Haywood, Luke, Too Rich to Do the Dirty Work? Wealth Effects on the Demand for Good Jobs (January 2014). DIW Berlin Discussion Paper No. 1355, Available at SSRN: https://ssrn.com/abstract=2388081 or http://dx.doi.org/10.2139/ssrn.2388081

Luke Haywood (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

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