JOB COMPLEXITY AND WAGES

We estimate a model inspired by Tinbergen's 1956 article, with utility maximizing job choice, where utility depends on job complexity and th e wage rate, and where the equilibrium wage structure provides for com pensation for more complex jobs. It involves maximum likelihood estima tion of a two-equation model with heteroscedastic errors, in which one of the equations is an ordered probit. In the wage function, individu al characteristics and job level interact (comparative advantage). Fem ales face a steeper wage slope across job levels. Individuals' margina l rate of substitution between wage and job complexity is increasing b oth in job complexity and wages.