The Shift Premium: Evidence From a Discrete Choice Experiment

ABSTRACT Shift work is a widespread but understudied phenomenon. This study 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 significant premiums for shift work, especially for night and rotating shifts. We observe substantial heterogeneity in the shift premium across respondents and provide suggestive evidence of labour market sorting.