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Do Firms Pay For Perceived Risks At Work?

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  • Christian Grund

Abstract

The theory of compensating wage differentials is generally accepted. It states that firms have to pay wage bonuses for hazardous work. However, there is as yet no strong or even contrary evidence for compensating wage differentials in Germany. By estimating wage regressions with data from the German Socio-Economic Panel (GSOEP) and using individually perceived hazards of work accidents as a risk variable, evidence that firms do pay risk premiums for hazardous work are found even though other effects could dilute the existing wage bonuses. Taking into account these results, the incentives for German firms to invest in accident prevention are discussed in the context of the existing institutional conditions.

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Bibliographic Info

Article provided by LMU Munich School of Management in its journal Schmalenbach Business Review.

Volume (Year): 53 (2001)
Issue (Month): 3 (July)
Pages: 229-239

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Handle: RePEc:sbr:abstra:v:53:y:2001:i:3:p:229-239

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Cited by:
  1. Spengler, Hannes, 2004. "Kompensatorische Lohndifferenziale und der Wert eines statistischen Lebens in Deutschland (Compensating wage differentials and the value of a statistical life in Germany)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 37(3), pages 269-305.
  2. Schaffner, Sandra & Spengler, Hannes, 2005. "Der Einfluss unbeobachteter Heterogenität auf kompensatorische Lohndifferentiale und den Wert eines Statistischen Lebens: Eine mikroökonometrische Parallelanalyse mit IABS und SOEP," Darmstadt Discussion Papers in Economics 36800, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute of Economics (VWL).
  3. repec:iab:iabzaf:v:37:i:3:p:269-305 is not listed on IDEAS

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