IDEAS home Printed from https://ideas.repec.org/a/sae/ilrrev/v59y2006i2p226-242.html
   My bibliography  Save this article

Risk Compensation for Hospital Workers: Evidence from Relative Wages of Janitors

Author

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

Abstract

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.

Suggested Citation

  • Keith A. Bender & Hosne A. Mridha & James Peoples, 2006. "Risk Compensation for Hospital Workers: Evidence from Relative Wages of Janitors," ILR Review, Cornell University, ILR School, vol. 59(2), pages 226-242, January.
    • Handle: RePEc:sae:ilrrev:v:59:y:2006:i:2:p:226-242
    DOI: 10.1177/001979390605900203
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/001979390605900203
    Download Restriction: no
    File URL: https://libkey.io/10.1177/001979390605900203?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Siebert, W Stanley & Wei, X, 1994. "Compensating Wage Differentials for Workplace Accidents: Evidence for Union and Nonunion Workers in the UK," Journal of Risk and Uncertainty, Springer, vol. 9(1), pages 61-76, July.
    2. Elliott, Robert F. & Sandy, Robert, 1998. "Adam Smith may have been right after all: A new approach to the analysis of compensating differentials," Economics Letters, Elsevier, vol. 59(1), pages 127-131, April.
    3. Duncan, Greg J & Stafford, Frank P, 1980. "Do Union Members Receive Compensating Wage Differentials?," American Economic Review, American Economic Association, vol. 70(3), pages 355-371, June.
    4. Edward J. Schumacher & Barry T. Hirsch, 1997. "Compensating Differentials and Unmeasured Ability in the Labor Market for Nurses: Why Do Hospitals Pay More?," ILR Review, Cornell University, ILR School, vol. 50(4), pages 557-579, July.
    5. Arnould, Richard J & Nichols, Len M, 1983. "Wage-Risk Premiums and Workers' Compensation: A Refinement of Estimates of Compensating Wage Differential," Journal of Political Economy, University of Chicago Press, vol. 91(2), pages 332-340, April.
    6. Morley Gunderson & Douglas Hyatt, 2001. "Workplace risks and wages: Canadian evidence from alternative models," Canadian Journal of Economics, Canadian Economics Association, vol. 34(2), pages 377-395, May.
    7. Morley Gunderson & Douglas Hyatt, 2001. "Workplace risks and wages: Canadian evidence from alternative models," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 34(2), pages 377-395, May.
    8. Kniesner, Thomas J & Leeth, John D, 1991. "Compensating Wage Differentials for Fatal Injury Risk in Australia, Japan, and the United States," Journal of Risk and Uncertainty, Springer, vol. 4(1), pages 75-90, January.
    9. G. R. Arabsheibani & A. Marin, 2001. "Self-selectivity bias with a continuous variable: potential pitfall in a common procedure," Applied Economics, Taylor & Francis Journals, vol. 33(15), pages 1903-1910.
    10. Sandy, Robert & R. F. Elliot & W. S. Siebert & X. D. Wei, 2001. "Measurement Error and the Effects of Unions on the Compensating Differentials for Fatal Workplace Risks," Journal of Risk and Uncertainty, Springer, vol. 23(1), pages 33-56, July.
    11. Peter Dorman & Paul Hagstrom, 1998. "Wage Compensation for Dangerous Work Revisited," ILR Review, Cornell University, ILR School, vol. 52(1), pages 116-135, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thomas Leoni, 2010. "What drives the perception of health and safety risks in the workplace? Evidence from European labour markets," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 37(2), pages 165-195, May.
    2. Anne R Pebley & Noreen Goldman & Theresa Andrasfay & Boriana Pratt, 2021. "Trajectories of physical functioning among older adults in the US by race, ethnicity and nativity: Examining the role of working conditions," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-22, March.
    3. Jin-Long Liu & Chia-Hui Huang & Chih-Hai Yang, 2013. "Technological Change, Job Risk, and Wage Premium: Evidence from Taiwan," The Developing Economies, Institute of Developing Economies, vol. 51(2), pages 186-202, June.
    4. Dieter Verhaest & Stef Adriaenssens, 2022. "Compensating wage differentials in formal and informal jobs," Kyklos, Wiley Blackwell, vol. 75(1), pages 106-126, February.
    5. James Peoples & Bin Wang, 2007. "Privatization and Labor Cost Savings: Evidence from Health Care Services," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(2), pages 145-157, June.
    6. Donghyun Kim & Up Lim, 2017. "Wage Differentials between Heat-Exposure Risk and No Heat-Exposure Risk Groups," IJERPH, MDPI, vol. 14(7), pages 1-17, June.
    7. Anthony E. Boardman & Aidan R. Vining, 2010. "Assessing the Economic Worth of Public–Private Partnerships," Chapters, in: Graeme A. Hodge & Carsten Greve & Anthony E. Boardman (ed.), International Handbook on Public–Private Partnerships, chapter 8, Edward Elgar Publishing.
    8. Keith A. Bender & Hosne Mridha, 2011. "The Effect of Local Area Unemployment on Compensating Wage Differentials for Injury Risk," Southern Economic Journal, John Wiley & Sons, vol. 78(2), pages 287-307, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dionne, Georges & Lebeau, Martin, 2010. "Le calcul de la valeur statistique d’une vie humaine," L'Actualité Economique, Société Canadienne de Science Economique, vol. 86(4), pages 487-530, décembre.
    2. Bellavance, Franois & Dionne, Georges & Lebeau, Martin, 2009. "The value of a statistical life: A meta-analysis with a mixed effects regression model," Journal of Health Economics, Elsevier, vol. 28(2), pages 444-464, March.
    3. Viscusi, W Kip & Aldy, Joseph E, 2003. "The Value of a Statistical Life: A Critical Review of Market Estimates throughout the World," Journal of Risk and Uncertainty, Springer, vol. 27(1), pages 5-76, August.
    4. Danielle Lamb & Rafael Gomez & Milad Moghaddas, 2022. "Unions and hazard pay for COVID‐19: Evidence from the Canadian Labour Force Survey," British Journal of Industrial Relations, London School of Economics, vol. 60(3), pages 606-634, September.
    5. Marcela Parada-Contzen & Andrés Riquelme-Won & Felipe Vasquez-Lavin, 2013. "The value of a statistical life in Chile," Empirical Economics, Springer, vol. 45(3), pages 1073-1087, December.
    6. Matthew Cole & Robert Elliott & Joanne Lindley, 2009. "Dirty money: Is there a wage premium for working in a pollution intensive industry?," Journal of Risk and Uncertainty, Springer, vol. 39(2), pages 161-180, October.
    7. Abdelaziz Benkhalifa & Paul Lanoie & Mohamed Ayadi, 2013. "Estimated hedonic wage function and value of life in an African country," Economics Bulletin, AccessEcon, vol. 33(4), pages 3023-3031.
    8. W. Kip Viscusi & Clayton Masterman, 2017. "Anchoring biases in international estimates of the value of a statistical life," Journal of Risk and Uncertainty, Springer, vol. 54(2), pages 103-128, April.
    9. Benkhalifa, Abdelaziz, 2014. "Rôle du syndicat dans la détermination de la valeur de la vie statistique en Tunisie [Trade union role in determining the value of a statistical life in Tunisia]," MPRA Paper 63736, University Library of Munich, Germany.
    10. Polat, Sezgin, 2013. "Wage Compensation for Risk: The Case of Turkey," GIAM Working Papers 13-11, Galatasaray University Economic Research Center.
    11. Ikuho Kochi & Bryan Hubbell & Randall Kramer, 2006. "An Empirical Bayes Approach to Combining and Comparing Estimates of the Value of a Statistical Life for Environmental Policy Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(3), pages 385-406, July.
    12. Zac Reynolds & Daehoon Nahm & Craig MacMillan, 2022. "Compensating Wage Differentials for Job Fatality and Injury Risk in Australia," The Economic Record, The Economic Society of Australia, vol. 98(321), pages 152-165, June.
    13. Anna Alberini, 2017. "Measuring the economic value of the effects of chemicals on ecological systems and human health," OECD Environment Working Papers 116, OECD Publishing.
    14. G. Arabsheibani & A. Marin, 2000. "Stability of Estimates of the Compensation for Danger," Journal of Risk and Uncertainty, Springer, vol. 20(3), pages 247-269, May.
    15. Beat Hintermann & Anna Alberini & Anil Markandya, 2010. "Estimating the value of safety with labour market data: are the results trustworthy?," Applied Economics, Taylor & Francis Journals, vol. 42(9), pages 1085-1100.
    16. Heywood, John S. & Siebert, W. Stanley & Wei, Xiangdong, 2005. "The Implicit Costs and Benefits of Family Friendly Work Practices," IZA Discussion Papers 1581, Institute of Labor Economics (IZA).
    17. Jin-Long Liu & Chia-Hui Huang & Chih-Hai Yang, 2013. "Technological Change, Job Risk, and Wage Premium: Evidence from Taiwan," The Developing Economies, Institute of Developing Economies, vol. 51(2), pages 186-202, June.
    18. Alberto Dávila & Marie T. Mora & Rebecca González, 2011. "English-Language Proficiency and Occupational Risk Among Hispanic Immigrant Men in the United States," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(2), pages 263-296, April.
    19. Georges Dionne & Paul Lanoie, 2002. "How to Make a Public Choice About the Value of a Statistical Life: The Case of Road Safety," Cahiers de recherche 02-04, HEC Montréal, Institut d'économie appliquée.
    20. Pouliakas, Konstantinos & Theodossiou, Ioannis, 2010. "An Inquiry Into The Theory, Causes And Consequences Of Monitoring Indicators Of Health And Safety At Work," SIRE Discussion Papers 2010-120, Scottish Institute for Research in Economics (SIRE).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ilrrev:v:59:y:2006:i:2:p:226-242. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ilr.cornell.edu .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.