Valuing preferences for the workplace amongst University students

Abstract

In this study I employ a discrete choice experiment amongst students at the University of Malta to evaluate their preferences for flexibility at the workplace. A sample of students were presented with two-job compensation packages, A and B, and were asked to choose one over the other. Through this experiment, I find evidence that, besides earnings, individuals also value flexibility when choosing amongst alternative jobs. On average, today’s students (i.e. tomorrow’s workers) are willing to give up 7% of their wage for the option of flexible scheduling and 6% of their wage for the option of working from home. This study also employs a linear probability model (LPM) to identify which individual characteristics influence job choices. In contrast with existing literature, which reports that females value workplace flexibility more than males, this study does not find evidence of statistically significant gender differences in preferences for flexibility. This outcome may be the result of the sample consisting entirely of students, and it may be interpreted in two ways. It may reflect the preferences of young individuals before engaging in full-time employment, such preferences may change as individuals age and life circumstances change. Conversely, it may reflect a change in preferences across generations. If the latter case applies, the findings of this study suggest that flexible options could be promoted as a means to achieve an individualised work-life balance which allows individuals to pursue their career and other personal goals irrespective of gender. Finally, this study also finds that tomorrow’s workers are willing to upskill by further investing in their education and they prefer jobs which help them in doing so. These findings suggest that flexible options could be used as an instrument for attracting and retaining talent.