Using Twins to Resolve the Twin Problem of Having a Bad Job and a Low Wage

Research output: Contribution to journalArticleScientificpeer-review


Research units

  • Tampere University
  • Turku School of Economics
  • IZA Institute of Labor Economics


We use twin data linked to register-based information on earnings to examine the long-standing puzzle of nonexistent compensating wage differentials. The use of twin data with a panel dimension allows us to alleviate the impact of otherwise unobserved productivity differences that have been the prominent reason for estimation bias in prior studies. Using a twin design, we find some evidence for positive compensation of adverse working conditions in the labor market.


Original languageEnglish
Pages (from-to)155-177
JournalManchester School
Issue number2
Publication statusPublished - Mar 2018
MoE publication typeA1 Journal article-refereed

ID: 11546855