Firm Pay, Amenities, and Inequality

Abstract

"We estimate firm-specific amenity valuations using discrete choice experiments embedded in a large-scale survey of German workers linked to administrative records. Workers rank hypothetical offers from real firms they would consider joining, with randomized wages identifying money-metric valuations. Valuations vary substantially across firms and demographic groups, yet a single index performs surprisingly well. Valuations are approximately orthogonal to firm wage premia; they therefore do not offset between-firm wage inequality. However, male-female differences in amenity valuations explain part of the gender wage gap." (Author's abstract, IAB-Doku) ((en))

Cite article

Caldwell, S., Haegele, I. & Heining, J. (2026): Firm Pay, Amenities, and Inequality. (NBER working paper / National Bureau of Economic Research 35149), Cambridge, Mass, 127 p.