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IZA Discussion Paper No. 16460
September 2023
The Shift Premium: Evidence from a Discrete Choice Experiment
Sam Desiere, Christian Walter

forthcoming in: British Journal of Industrial Relations

Shift work is a widespread but understudied phenomenon. This paper examines one specific aspect of shift work: the shift premium. To this end, we included a discrete choice experiment in an online survey targeted at night and shift workers. Respondents chose between a standard 9 am - 5 pm job paying €15 per hour and a job with shift work in which the wage randomly varied between €12 and €20. The results show that respondents demand sizeable shift premiums to prefer shift over daytime work, with higher premiums for more onerous working hours such as night shifts or rotating shifts. We observe substantial heterogeneity in the shift premium across respondents and provide suggestive evidence of labour market sorting.

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Olga Nottmeyer
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+352 585-855-501
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Christina Gathmann
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