@article{afb0134a671441d68a0c233d5014cef7,
title = "A note on the estimation of job amenities and labor productivity",
abstract = "This paper introduces a maximum likelihood estimator of the value of job amenities and labor productivity in a single matching market based on the observation of equilibrium matches and wages. The estimation procedure simultaneously fits both the matching patterns and the wage curve. While our estimator is suited for a wide range of assignment problems, we provide an application to the estimation of the Value of a Statistical Life using compensating wage differentials for the risk of fatal injury on the job. Using US data for 2017, we estimate the Value of Statistical Life at $6.3 million ($2017).",
author = "Arnaud Dupuy and Alfred Galichon",
note = "Funding Information: Over the last decade, a great deal of efforts has been made to bring matching models to data. In the transferable utility class of models, following Choo and Siow's seminal contribution, various extensions have been proposed to enrich the empirical methodology. These extensions were so far limited to the case when transfers are not observed. However, the observation of transfers allows to widen the scope of identified objects in this class of models, and in particular allows the analyst to separately identify the (pretransfer) values of a match for each partner. Our paper proposes an intuitive and tractable maximum likelihood approach to structurally estimate these values of a match for each partner using data about matches and transfers from a single market. We illustrate the usefulness of our methodology to the estimation of compensating wage differentials for the risk of fatal injury on the job. Publisher Copyright: Copyright {\textcopyright} 2022 The Authors.",
year = "2022",
month = jan,
doi = "10.3982/QE928",
language = "English (US)",
volume = "13",
pages = "153--177",
journal = "Quantitative Economics",
issn = "1759-7323",
publisher = "The Economic Society",
number = "1",
}