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Some online display advertisements are annoying. Although publishers know the payment they receive to run annoying ads, little is known about the cost that such ads incur (e.g., causing website abandonment). Across three empirical studies, the authors address two primary questions: (1) What is the economic cost of annoying ads to publishers? and (2) What is the cognitive impact of annoying ads to users? First, the authors conduct a preliminary study to identify sets of more and less annoying ads. Second, in a field experiment, they calculate the compensating differential, that is, the amount of money a publisher would need to pay users to generate the same number of impressions in the presence of annoying ads as it would generate in their absence. Third, the authors conduct a mouse-tracking study to investigate how annoying ads affect reading processes. They conclude that in plausible scenarios, the practice of running annoying ads can cost more money than it earns.

In this paper, we develop a model that captures key components of the Roy model, a search model, compensating differentials, and human capital accumulation on-the-job. We establish which components of the model can be non-parametrically identified and which ones cannot. We estimate the model and use it to assess the relative contribution of the different factors for overall wage inequality. We find that variation in premarket skills (the key feature of the Roy model) is the most important component to account for the majority of wage variation. We also demonstrate that there is substantial interaction between the other components, most notably, that the importance of the job match obtained by search frictions varies from around 4% to around 29%, depending on how we account for other components. Inequality due to preferences for non-pecuniary aspects of the job (which leads to compensating differentials) and search are both very important for explaining other features of the data. Search is important for turnover, but so are preferences for non-pecuniary aspects of jobs as one-third of all choices between two jobs would have resulted in a different outcome if the worker only cared about wages.

This paper develops a generalized Roy model with human capital accumulation, moral hazard, and career concerns. We identify and estimate the model with a large panel that matches data on publicly listed firms to information on their executives. The structural estimates obtained are used to decompose the firm-size pay gap. We find that although total compensation and incentive pay increase with firm size, certaintyequivalent pay decreases with firm size. In larger firms, and for more highly ranked executives, weaker signal quality about effort results in higher risk premiums. This risk premium accounts for roughly 80 percent of the firm-size gap in total compensation. Larger firms are also willing to pay more than smaller ones to attract executives. Finally, the estimated coefficients on human capital accumulation from formal education and experience gained from different firms are individually significant, but their collective effect on firm-size pay differentials nets out.

We develop a search model of informal labour markets with realistic labour regulations, including minimum wage, and heterogeneous workers and firms. Smaller firms and lower wages in the informal sector emerge endogenously as firms and workers decide whether to comply with regulations. Because skilled and unskilled workers are imperfect substitutes in production, the model uniquely captures the informality consequences of shocks that affect returns to skill, such as rising educational levels. The model also reproduces empirical patterns incompatible with other frameworks: the presence of skilled and unskilled workers in the formal and informal sectors, the rising share of skilled workers by firm size, and formal and firm-size wage premiums that vary by skill level. We estimate the model using 2003 data from Brazil and show that it successfully predicts labour market changes observed between 2003 and 2012. Under a range of different assumptions, changes in workforce composition appear as the main drivers of the reduction in informality over this period. Policy simulations using the estimated model suggest that progressive payroll taxes are a cost-effective way to reduce informality.

This paper uses street-level data on property sales and crime rates for England and Wales to investigate compensating differentials for crime risk. My identification strategy relies on the use of non-parametric regional time trends on various levels of spatial aggregation as well as various fixed effects for streets and wider areas to control for unobserved amenities and regional economic conditions. The data comes from transaction data collected by the land registry and recently published crime maps for the whole of the UK. My estimates, which are robust to a range of sensible specification changes, suggest that each case of anti-social behaviour per ten population in the same street leads to an approximately 0.6–0.8% drop in property prices, while a corresponding increase in violent crime decreases prices by roughly 0.6–1.6% and a corresponding increase in non-violent crime by about 0.2–0.4%. The majority of estimates are at the upper end of these intervals. Estimates for robbery, burglary and vehicle crime are either zero or positive, but are possibly biased because of reverse causality. Crime outside of the respective street does not appear to matter, which is consistent with earlier findings. Expressed in monetary terms each case of anti-social behaviour costs society between £5000 and £6700 and each violent crime between £5000 and £13,300. The results confirm estimates based on prior willingness-to-pay studies and other studies using smaller areas such as single cities.

PurposeUsing the Canadian Census of 2016, the present study examines the Black and White gap in compensating differentials for their commute to work.Design/methodology/approachThe data are from the Canadian Census of 2016. The standard Mincerian wage regression, augmented by commute-related variables and their confounders, is estimated by OLS. The estimations use sample weights and heteroscedasticity robust standard errors.FindingsIn the standard Mincerian wage regressions, Black men are found to earn non-negligibly less than White men. No such gap is found among women. When the Mincerian wage equation is augmented by commute duration and its confounders, commute duration is revealed to positively predict wages of White men and negatively associate with wages of Black men. At the same time, in the specifications including commute duration and its confounders, the coefficient for the dummy variable identifying Black men is positive with a non-negligible size. The latter pattern indicates wage discrepancies among Black men by their commute duration. Again, no difference is found between Black and White women in these estimations.Research limitations/implicationsThe main caveat is that due to data limitations, causal estimates could not be produced.Practical implicationsFor the Canadian working men, the uncovered patterns indicate both between and within race gaps in the impact of commuting on wages. Particularly, Black men seem to commute longer towards relatively lower paying jobs, while the opposite holds for their White counterparts. However, Black men who reside close to their work earn substantially more than both otherwise identical White men and Black men who live far away from their jobs. The implications for research and policy are discussed.Originality/valueThis is the first paper focused on commute compensating differentials by race using Canadian data.

Abstract There is some evidence that female sex workers (FSWs) receive greater earnings for providing unprotected sex. In 2003, the landscape of the fight against HIV/AIDS dramatically changed in India with the introduction of Avahan, the largest HIV prevention programme implemented globally. Using a unique, cross-sectional bio-behavioural dataset from 3591 FSWs located in the four Indian states where Avahan was implemented, we estimate the economic loss faced by FSWs who always use condoms. We estimate the causal effect of condom use on the price charged during the last paid sexual intercourse using the random targeting of Avahan as an instrumental variable. Results indicate that FSWs who always use condoms face an income loss of 65% (INR125, US$2.60) per sex act compared to peers providing unprotected sex, consistent with our expectations. The main finding confirms that clients have a preference for unprotected sex and that policies aiming at changing clients’ preferences and at improving the bargaining power of FSWs are required to limit the spread of HIV.

Poverty remains a significant global challenge, particularly in severely impoverished areas where balancing eco-civilization and economic growth is crucial. This study aims to analyze livelihood assets, determine appropriate strategies, and establish an eco-compensation model based on ecological vulnerability in Longnan City. We developed a livelihood evaluation index system using the Sustainable Livelihoods Framework and entropy weight method to assess the vulnerable portfolio of livelihood assets. We examined poverty causes and proposed targeted alleviation measures. Additionally, we created an “Eco-Compensation Model of Longnan City” incorporating the Sloping Land Conversion Program, key industries exit compensation, and cross-provincial water compensation based on incentive and punitive mechanisms. Our findings reveal that severely impoverished areas in Longnan City are primarily in the central, southern, and northwestern regions. Poverty is driven by unfavorable natural conditions, frequent natural disasters, regional economic marginalization, inadequate infrastructure, and a limited agricultural structure. The evaluation shows that natural capital in the five areas is lower than the national average level. We propose targeted measures for different vulnerable livelihood portfolios. The eco-compensation model provides a scientifically calculated compensation standard, offering a crucial funding source for implementing targeted poverty alleviation strategies.

This paper explores the relationship between wages and the scientific orientation of R&D organizations. Firms that adopt a science-oriented research approach (i.e., \"science\") allow their researchers to pursue and publish an individual research agenda. The adoption of science may be associated with a \"taste\" for science on the part of researchers (a preference effect) and/or as a \"ticket of admission\" to gain earlier access to scientific discoveries with commercial application (a productivity effect). These two effects differ in their impact on wages. Whereas the preference effect contributes to a negative compensating differential, the productivity effect may result in rent sharing. However, because science may be adopted by firms employing higher-quality researchers, cross-sectional evaluations of wages and science may be biased by unobserved heterogeneity. To overcome this bias, this paper introduces a novel empirical approach. Specifically, prior to accepting a given job, many scientists receive multiple job offers , allowing for the calculation of the wage-science relationship and controlling for differences in salary levels offered to individual researchers. Using a dataset composed of multiple job offers to postdoctoral biologists, the results suggest a negative relationship between wages and science. These findings are robust to restricting the sample to nonacademic job offers, but the findings depend critically on the inclusion of researcher fixed effects. Conditional on perceived ability, scientists do indeed pay to be scientists.

Economists have long employed hedonic wage analysis to estimate income-fatality risk trade-offs, but some scholars have raised concerns about systematic measurement error and omitted variable bias in the empirical applications of this model. Recent studies have employed panel methods to remove time-invariant individualspecific characteristics that could induce bias in estimation. In an analogous manner, this paper proposes to exploit assortative matching on risk attitudes within married couples to control for worker characteristics that are unobserved to the econometrician. I develop and implement a modified hedonic wage estimator based on a within-couple differenced wage equation for full-time working married couples with the Current Population Survey Merged Outgoing Rotation Group over 1996-2002. The key assumption builds on the findings in the assortative matching literature that individuals often marry those who have common traits across many dimensions, including those that may influence worker wages and are correlated with observed occupational fatality risks. This estimator identifies the compensating differential for occupation fatality risk by using within-couple differencing to remove unobserved determinants of risk attitudes and risk-mitigation ability, on which couples match, from the error term. I find that the value of statistical life (VSL) varies from $9 to $13 million (2016$). The within-couple differenced VSL estimates are stable and more robust to variation in specification of the hedonic wage model than conventional, cross-sectional hedonic wage models. I also find that the value of statistical life takes an inverted-U shape with respect to age.