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Risk compensation for hospital workers: Evidence from relative wages of janitors


Author Info

  • Keith A. Bender
  • Hosne A. Mridha
  • James Peoples


This study, using individual worker data on janitors taken from the 1985-2001 Current Population Survey and industry injury data from the Bureau of Labor Statistics, examines whether compensation for working in a high-risk work environment contributes to the relatively high wage rates of hospital janitors. The authors find that when the analysis corrects for risk endogeneity (workers' tendency to sort themselves according to their tolerance for workplace risk), risk compensation increases wage rates by 13.4% for union hospital janitors and is a major source of their wage advantage over nonunion janitors in other industries. Since this risk compensation is only available to union workers, the authors interpret this result as the effect of the union voice mechanism. (Free full-text download available at

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Bibliographic Info

Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 59 (2006)
Issue (Month): 2 (January)
Pages: 226-242

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Handle: RePEc:ilr:articl:v:59:y:2006:i:2:p:226-242

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Cited by:
  1. James Peoples & Bin Wang, 2007. "Privatization and Labor Cost Savings: Evidence from Health Care Services," Atlantic Economic Journal, International Atlantic Economic Society, International Atlantic Economic Society, vol. 35(2), pages 145-157, June.
  2. Thomas Leoni, 2010. "What drives the perception of health and safety risks in the workplace? Evidence from European labour markets," Empirica, Springer, Springer, vol. 37(2), pages 165-195, May.


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