Your Money or Your Life?
(2011) NEKK01 20111Department of Economics
- Abstract
- The theory of the hedonic wage model and compensating wage differentials dates back to the times of Adam Smith, and this study attempts to investigate, using econometric analysis, whether the Swedish labor market can give any claim to these theories. A brief background to the health economics discipline is followed by relevant theory and research in the field of compensating wage differentials. Using an alternative approach based on the wage change equation formulated by Charles Brown, and comparing the results to a previous study by Duncan and Holmlund, an econometric analysis is then performed. The empirical results do not yield any clear evidence in any direction regarding the existence of compensating wage differentials, although some... (More)
- The theory of the hedonic wage model and compensating wage differentials dates back to the times of Adam Smith, and this study attempts to investigate, using econometric analysis, whether the Swedish labor market can give any claim to these theories. A brief background to the health economics discipline is followed by relevant theory and research in the field of compensating wage differentials. Using an alternative approach based on the wage change equation formulated by Charles Brown, and comparing the results to a previous study by Duncan and Holmlund, an econometric analysis is then performed. The empirical results do not yield any clear evidence in any direction regarding the existence of compensating wage differentials, although some indications appear supporting the theory of limited omitted variable bias and measurement error using the wage change equation in place of a conventional wage level equation. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/2153128
- author
- Teklé Palm, Michael LU
- supervisor
-
- Ulf Gerdtham LU
- organization
- course
- NEKK01 20111
- year
- 2011
- type
- M2 - Bachelor Degree
- subject
- keywords
- SOFI, LNU, Hedonic Wage Function, Health Economics, Compensating Wage Differentials, Wage Change Equation
- language
- English
- id
- 2153128
- date added to LUP
- 2011-09-06 07:05:12
- date last changed
- 2011-09-06 07:05:12
@misc{2153128, abstract = {{The theory of the hedonic wage model and compensating wage differentials dates back to the times of Adam Smith, and this study attempts to investigate, using econometric analysis, whether the Swedish labor market can give any claim to these theories. A brief background to the health economics discipline is followed by relevant theory and research in the field of compensating wage differentials. Using an alternative approach based on the wage change equation formulated by Charles Brown, and comparing the results to a previous study by Duncan and Holmlund, an econometric analysis is then performed. The empirical results do not yield any clear evidence in any direction regarding the existence of compensating wage differentials, although some indications appear supporting the theory of limited omitted variable bias and measurement error using the wage change equation in place of a conventional wage level equation.}}, author = {{Teklé Palm, Michael}}, language = {{eng}}, note = {{Student Paper}}, title = {{Your Money or Your Life?}}, year = {{2011}}, }