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Valuing alternative work arrangements

Author(s): Mas, Alexandre; Pallais, Amanda

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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.
Publication Date: Dec-2017
Citation: Mas, A, Pallais, A. (2017). Valuing alternative work arrangements. American Economic Review, 107 (12), 3722 - 3759. doi:10.1257/aer.20161500
DOI: doi:10.1257/aer.20161500
ISSN: 0002-8282
Pages: 1 - 39
Type of Material: Journal Article
Journal/Proceeding Title: American Economic Review
Version: Final published version. Article is made available in OAR by the publisher's permission or policy.

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