Workplace Relations and Wages
This project uses the Mincer wage function framework to explore what can be learned from responses to two novel survey questions that were included in the 2000 wave of the Swedish Standard of Living Survey. The first question asks the respondent to assess her own ability to find employment as good as her current job. The second question asks the respondent to judge how easy it would be for her employer to replace her with an equivalent substitute. I start by studying the correlates of the subjective questions using an ordered probit model and relate the findings to the predictions of human capital theory and models with search frictions. Next, I study whether respondents who report better outside opportunities receive higher wages and whether respondents who think they are easy to replace tend to have lower wages, holding all other factors constant.
LABOR MARKET ISSUES; Wages, health insurance and other benefits