Workers searching for new jobs focus increasingly on non-wage job aspects such as workplace flexibility, telecommuting options, and overall work environment. In a new IZA discussion paper, Tobias Lehmann examines the Austrian job market from 1996 to 2011 to study how these aspects relate to wage inequality.
His analysis shows that when considering these non-wage benefits, job value inequality is notably more pronounced than what is suggested by wages alone. The study finds that over the 15-year period, there was a shift in the labor market: companies offering better non-wage benefits increasingly also provided higher salaries, leading to a greater disparity in overall job satisfaction and value.
Lehmann’s work highlights the importance of considering both monetary and non-monetary factors in understanding labor market inequality. The findings suggest a nuanced view of job satisfaction, emphasizing that non-wage aspects play a crucial role in shaping an employee’s work experience.