A model analyzing the choice of shift is developed and estimated using data from two supplements to the Current Population Survey. The findings show a positive wage premium for shift work that varies with personal characteristics, and there is strong evidence showing the importance of self-selection, as workers with low potential daytime earnings are more likely to choose night work and supplement their earnings. The findings demonstrate that cross-section estimates of wage premiums for union membership and firm size are biased upward because they pick up some of the compensating differential for shift work.
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