High-Pressure, High-Paying Jobs?

Nagler M, Rincke J, Winkler E (2023)

Publication Type: Journal article

Publication year: 2023


Pages Range: 1-45

DOI: 10.1162/rest_a_01362


Work-related stress has reportedly increased over time. Using worker-level survey and experimental data, we investigate the labor market consequences of work pressure. We build a measure of pressure strongly associated with adverse health outcomes and show that pressure comes with a sizable earnings premium, reflecting workers' willingness-to-pay to avoid pressure. As expected, we do not find a premium among civil servants who face strong labor market frictions. Our experimental evidence is consistent with workers sorting into high-pressure jobs and with a sizable market-level compensating differential. Differences in the prevalence and valuation of work pressure explain substantial shares of wage inequality.

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How to cite


Nagler, M., Rincke, J., & Winkler, E. (2023). High-Pressure, High-Paying Jobs? Review of Economics and Statistics, 1-45. https://doi.org/10.1162/rest_a_01362


Nagler, Markus, Johannes Rincke, and Erwin Winkler. "High-Pressure, High-Paying Jobs?" Review of Economics and Statistics (2023): 1-45.

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