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The artist wage penalty in the formal sector
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We provide the first within-worker evidence on the artist wage penalty in the formal sector. Using administrative matched employer-employee data covering the nearuniverse of formal private-sector workers in Portugal from 2010 to 2023, we find that workers transitioning into artistic occupations earn 1.5% less in total compensation. The aggregate penalty masks two offsetting margins: artists accept a 4.1% hourly wage discount but supply 2.6% more hours, consistent with Throsby’s (1994) workpreference model. The penalty is gender-neutral but varies across occupations, with photographers, film-related artists, and painters facing the largest hourly discounts and musicians compensating through longer hours. We then evaluate the Estatuto dos Profissionais da Área da Cultura, a 2022 Portuguese reform targeting bogus selfemployment in the cultural sector. The reform increased the share of formally employed artists in covered sectors, but the hourly wage penalty widened post-reform. Formalisation reduces precarity but does not close the artist wage gap, and its cost is partly borne by workers through wage compression.
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Artist wage penalty Compensating differentials Work-preference model Cultural sector
Contexto Educativo
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SSRN
Licença CC
Sem licença CC