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Dirty Money: Is there a Wage Premium for Working in a Pollution Intensive Industry

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Author Info

  • Matthew A Cole
  • Robert J R Elliott
  • Joanne K 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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Bibliographic Info

Paper provided by Department of Economics, University of Birmingham in its series Discussion Papers with number 09-13.

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Length: 36 pages
Date of creation: Nov 2009
Date of revision:
Handle: RePEc:bir:birmec:09-13

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Postal: Edgbaston, Birmingham, B15 2TT
Web page: http://www.economics.bham.ac.uk
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Related research

Keywords: Compensating Wage Differentials; Pollution; Value of Statistical Life;

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References

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Cited by:
  1. 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.
  2. 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.

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