TY - RPRT AU - Böckerman, Petri AU - Ilmakunnas, Pekka AU - Vainiomäki, Jari TI - Using Twins to Resolve the Twin Problem of Having a Bad Job and a Low Wage PY - 2014/Oct/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 8557 UR - https://www.iza.org/publications/dp8557 AB - We use data on twins matched to register-based information on earnings to examine the long-standing puzzle of non-existent compensating wage differentials. The use of twin data allows us to remove otherwise unobserved productivity differences that were the prominent reason for estimation bias in the earlier studies. Using twin differences we find evidence for positive compensation of adverse working conditions in the labor market. KW - compensating differentials KW - earnings KW - unobserved ability KW - productivity ER -