Upjohn Author ORCID Identifier

https://orcid.org/0000-0001-9158-2592

Publication Date

5-1-2013

Series

Upjohn Institute working paper ; 13-196

**Published Version**

In Empirical Economics 52: 79-121

DOI

10.17848/wp13-196

Abstract

This paper studies the link between hourly wages and workers’ subjective assessments of how easy it would be to find another job as good as the present one, and how easy it would be for an employer to replace an employee. First, using high-quality data, I study the correlates of these two assessments. Second, I study whether respondents who report better outside opportunities and respondents who think they are difficult to replace receive higher wages. The results appear to be consistent with predictions of at least three theoretical frameworks: human capital theory, search theory, and a “locus of control” model.

Issue Date

May 2013

Subject Areas

LABOR MARKET ISSUES; Wages, health insurance and other benefits

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Citation

Lachowska, Marta. 2013. "Employment Relations and Wages: What Can We Learn from Subjective Assessments?" Upjohn Institute Working Paper 13-196. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. https://doi.org/10.17848/wp13-196