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Dirty money: Is there a wage premium for working in a pollution intensive industry?

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  • Matthew Cole
  • Robert Elliott

    ()

  • Joanne Lindley

Abstract

Within a compensating wage differential framework we investigate whether there is a wage premium for working in a pollution intensive industry. Our results for the economy as a whole suggest a small wage premium of approximately one quarter of one percent associated with the risk of working in a dirty job. This premium rises to over fifteen percent for those individuals who work in one of the five dirtiest industries. We also find evidence of a fatal risk wage premium, providing estimates of the value of a statistical life of between £12 million and £19 million (2000 prices).

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File URL: http://hdl.handle.net/10.1007/s11166-009-9077-x
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Bibliographic Info

Article provided by Springer in its journal Journal of Risk and Uncertainty.

Volume (Year): 39 (2009)
Issue (Month): 2 (October)
Pages: 161-180

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Handle: RePEc:kap:jrisku:v:39:y:2009:i:2:p:161-180

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Web page: http://www.springerlink.com/link.asp?id=100299

Related research

Keywords: Compensating wage differentials; Pollution; Value of statistical life; J28; J31; Q52;

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Citations

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Cited by:
  1. Giulio Cainelli & Massimiliano Mazzanti & Simone Borghesi, 2012. "The European Emission Trading Scheme and environmental innovation diffusion: Empirical analyses using Italian CIS data," Working Papers 201201, University of Ferrara, Department of Economics.
  2. Bouvier, Rachel, 2014. "Distribution of income and toxic emissions in Maine, United States: Inequality in two dimensions," Ecological Economics, Elsevier, vol. 102(C), pages 39-47.
  3. Simone Borghesi & Giulio Cainelli & Massimiliano Mazzanti, 2012. "Brown Sunsets and Green Dawns in the Industrial Sector: Environmental Innovations, Firm Behavior and the European Emission Trading," Working Papers 2012.03, Fondazione Eni Enrico Mattei.
  4. Nyborg, Karine & Zhang, Tao, 2011. "Is corporate social responsibility associated with lower wages?," Memorandum 01/2011, Oslo University, Department of Economics.
  5. Giulio Cainelli & Massimiliano Mazzanti & Roberto Zoboli, 2013. "Environmental performance, manufacturing sectors and firm growth: structural factors and dynamic relationships," Environmental Economics and Policy Studies, Society for Environmental Economics and Policy Studies - SEEPS, vol. 15(4), pages 367-387, October.

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