Data and Code for Work Hours and Amenity Trade-offs

Are workers who place a higher value on a specific amenity more likely to receive that amenity in exchange for lower wages? According to the classic compensating differentials model, the answer is yes. However, when multiple amenities are considered, the relationship becomes more complex. We develop a model that accounts for complementarity and substitutability in firms’ provision of workplace amenities and workers’ preferences for them. Our empirical analysis, using data from the National Longitudinal Survey of Youth 1997, examines how workers trade off job amenities, particularly in relation to flexible work hours. We find that reduced hours are often substituted for other valued amenities, such as schedule flexibility and paid leave, disproportionately affecting women,