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Compensating Wage Differentials for Fatal Injury Risk in Australia, Japan, and the United States

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Author Info
Kniesner, Thomas J
Leeth, John D

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Abstract

Our research infers the effects of institutionalized wage setting and length worker-firm attachment by comparing estimated compensating wage differentials for fatal injury risk in Japanese, Australian, and U.S. manufacturing. Hedonic labor market equilibrium regressions for Japan reveal a statistically fragile compensating wage differential of 0 percent to 1.4 percent for exposure to the average fatality risk compared to employment in a perfectly safe workplace. Australian workers receive a statistically robust 2.5 percent estimated wage premium. Using new data on work-related fatalities, we find a 1 percent compensating wage differential in U.S. manufacturing that becomes more positive and statistically less significant as data are aggregated. Copyright 1991 by Kluwer Academic Publishers

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

Volume (Year): 4 (1991)
Issue (Month): 1 (January)
Pages: 75-90
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Handle: RePEc:kap:jrisku:v:4:y:1991:i:1:p:75-90

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  1. Hung-Lin Tao, 2004. "The compensating wage differentials for a career at sea - an empirical study of Taiwan," Applied Economics Letters, Taylor and Francis Journals, vol. 11(4), pages 241-244, March. [Downloadable!] (restricted)
  2. Frank R. Lichtenberg & Gautier Duflos, 2008. "Pharmaceutical innovation and the longevity of Australians: a first look," NBER Working Papers 14009, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. K. Shanmugam, 2000. "Valuations of Life and Injury Risks," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 16(4), pages 379-389, August. [Downloadable!] (restricted)
  4. S. Madheswaran, 2008. "Measuring the Value of Life and Limb: Estimating Compensating Wage Differentials Among Workers in Chennai and Mumbai," Working Papers id:1708, esocialsciences.com. [Downloadable!]
  5. Dora L. Costa & Matthew E. Kahn, 2002. "Changes in the Value of Life: 1940-1980," NBER Working Papers 9396, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. Simon, Nathalie B. & Cropper, Maureen L. & Alberini, Anna & Arora, Seema, 1999. "Valuing mortality reductions in India : a study of compensating wage differentials," Policy Research Working Paper Series 2078, The World Bank. [Downloadable!]
  7. Thomas J. Kniesner & John D. Leeth, 2000. "Workplace Safety Policy: Past, Present, and Future," Center for Policy Research Policy Briefs 19, Center for Policy Research, Maxwell School, Syracuse University. [Downloadable!]
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