High-Pressure, High-Paying Jobs?

Markus Nagler, Johannes Rincke and Erwin Winkler ()

No 10102, CESifo Working Paper Series from CESifo

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.

Keywords: work pressure; compensating differentials; working conditions; wage inequality; health (search for similar items in EconPapers)
JEL-codes: I10 I31 J20 J31 J32 J81 M52 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-eur, nep-hrm and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_10102

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