The Sustainability Wage Gap
A new research paper by Professor Philipp Krueger studies whether employees are willing to accept lower wages to work for more sustainable companies. With his co-authors, Professor Daniel Metzger (Erasmus University Rotterdam) and Jiaxin Wu (Stockholm School of Economics), they show that workers with preferences for sustainability accept about 10 percent lower wages. The research uncovers a new and important channel through which a firm’s sustainability policies can affect the bottom line of a firm, namely labor cost. It can be found here.
Dec 28, 2020