The DOI matches its Crossref record; 21 of the 21 references it cites were found in a registry or an index.
Compensating Wage Differentials and Unobserved Productivity
Abstract
It is well known that the inability to observe workers' full labor market productivity can bias estimates of compensating wage differentials. This paper attempts to determine how serious this bias is likely to be. It adopts a stochastic framework of workers' tastes over job attributes and models their equilibrium wage-job attribute choices. Workers' productivity is assumed to consist of observed and unobserved components. Applying the standard estimation methodology, we find that the degree of bias can be surprisingly large. On the basis of our analysis, we conclude that contemporary labor market studies are likely to severely underestimate workers' willingness to pay for job attributes. This has implications for a number of applications of compensating wage differentials, including value of life studies.
Overview
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Integrity signals
Registry
Cites
Statistics
Verification
Claims the paper makes
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Self-check
Percentages, sums and reported differences re-computed from the paper’s own numbers.
The self-check needs the paper’s full text.
Citations
Cites
Hedonic prices and implicit markets: product differentiation in pure competition
Rosen, S. (1974) · Journal of Political Economy · doi:10.1086/260169 · Cited by 10,603
Becker, G. S. (1991) · doi:10.4159/9780674020665 · Cited by 10,565
Human Capital, Effort, and the Sexual Division of Labor
Becker, G. S. (1985) · Journal of Labor Economics · doi:10.1086/298075 · Cited by 2,417
Chapter 12 The theory of equalizing differences
Rosen, S. (1986) · Handbook of Labor Economics · doi:10.1016/s1573-4463(86)01015-5 · Cited by 1,301
New Estimates of Quality of Life in Urban Areas
Blomquist, G. C., Berger, M. C., & Hoehn, J. P. (1988) · American Economic Review · Cited by 802
Does Marriage Really Make Men More Productive?
Korenman, S., & Neumark, D. (1991) · The Journal of Human Resources · doi:10.2307/145924 · Cited by 692
Equalizing Differences in the Labor Market
Brown, C. (1980) · The Quarterly Journal of Economics · doi:10.2307/1884607 · Cited by 596
The Value of Saving a Life: Evidence from the Labor MarketPreprint
Thaler, R. H., & Rosen, S. (1976) · RePEc: Research Papers in Economics · Cited by 518
Compensating Wage Differentials and Public Policy: A Review
Smith, R. S. (1979) · ILR Review · doi:10.1177/001979397903200304 · Cited by 358
WAGES, RENTS, AND AMENITIES: DIFFERENCES AMONG WORKERS AND REGIONS
ROBACK, J. (1988) · Economic Inquiry · doi:10.1111/j.1465-7295.1988.tb01667.x · Cited by 351
Cited by
The value of a statistical life: A critical review of market estimates throughout the world
Viscusi, W. K., & Aldy, J. E. (2003) · Journal of Risk and Uncertainty · doi:10.1023/a:1025598106257 · Cited by 2,135
The Value of a Statistical Life: A Critical Review of Market Estimates throughout the World
Viscusi, W. K. K., & Aldy, J. E. (2002) · SSRN Electronic Journal · doi:10.2139/ssrn.362840 · Cited by 508
Discrimination in an Equilibrium Search Model
Black, D. A. (1995) · Journal of Labor Economics · doi:10.1086/298376 · Cited by 353
Chrisman, J. J., Memili, E., & Misra, K. (2014) · Entrepreneurship Theory and Practice · doi:10.1111/etap.12014 · Cited by 292
Metadata
- Authors
- Hwang, H.-S., Reed, W. R., & Hubbard, C.
- Venue
- Journal of Political Economy
- Publisher
- University of Chicago Press
- Published
- 1992-08
- Volume
- 100
- Issue
- 4
- Pages
- 835-858
- ISSN
- 0022-3808 (ISSN-L)
- 1537-534X
- OpenAlex
- W1984509468
- Cited by
- 279
- References
- 21
- FWCI
- 11.62
- Type
- journal article
- Language
- en
- Open access
- closed
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
How to cite
Cite CoChat for the checks on this page, and the paper for its own findings.
- This page
- CoChat. (2026). Citation check: Compensating Wage Differentials and Unobserved Productivity. https://app.cochat.ai/papers/10.1086/261842
- The paper
- Hwang, H.-S., Reed, W. R., & Hubbard, C. (1992). Compensating Wage Differentials and Unobserved Productivity. Journal of Political Economy. https://doi.org/10.1086/261842
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
