Was Adam Smith Right After All? Another Test of the Theory of Compensating Wage Differentials
利用瑞典工人面板数据，通过工资变化模型而非工资水平模型来估计补偿性工资差异，减少了遗漏变量和测量误差的偏差，得到了更合理的系数估计。
Past attempts to estimate the magnitude of compensating wage differentials have been hindered by the biasing effects of omitted variables and measurement error. We argue that a wage change formulation, estimated with panel data that contain worker reports of their own job characteristics, reduces both of these biases. Our empirical results, based on a large panel of workers in Sweden, confirm these conjectures by giving many more reasonable coefficient estimates for a wage change equation than for a wage level formulation.