Valuing Alternative Work Arrangements
American Economic Review
vol. 107,
no. 12, December 2017
(pp. 3722-59)
(Complimentary)
Abstract
We employ a discrete choice experiment in the employment process for a national call center to estimate the willingness to pay distribution for alternative work arrangements relative to traditional office positions. Most workers are not willing to pay for scheduling flexibility, though a tail of workers with high valuations allows for sizable compensating differentials. The average worker is willing to give up 20 percent of wages to avoid a schedule set by an employer on short notice, and 8 percent for the option to work from home. We also document that many job-seekers are inattentive, and we account for this in estimation.Citation
Mas, Alexandre, and Amanda Pallais. 2017. "Valuing Alternative Work Arrangements." American Economic Review, 107 (12): 3722-59. DOI: 10.1257/aer.20161500Additional Materials
JEL Classification
- J22 Time Allocation and Labor Supply
- J31 Wage Level and Structure; Wage Differentials
- J80 Labor Standards: General
- L84 Personal, Professional, and Business Services