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Estimating Compensating Wage Differentials from Worker Mobility

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Author Info
Johansson, Per () (IFAU - Office of Labour Market Policy Evaluation)
Palme, Mårten () (Dept. of Economic Statistics, Stockholm School of Economics)

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Abstract

We estimate the effects of the implementation of a compulsory work injury insurance in Sweden in 1978 on compensating wage differentials. This involves two steps. First, we investigate if there are compensating wage differentials on the Swedish labor market and second, we assess if these were altered by the reform. We use panel data for the period 1970 to 1990 with annual information for a sample of blue collar workers. The econometric model departs from the worker's job mobility decision. Endogeneity, selection and measurement errors of risk exposure are considered in the estimation. The estimates show significant compensating wage differentials for work-related diseases in the female sub-sample. No significant effect of the reform was found.

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File URL: http://swopec.hhs.se/hastef/papers/hastef0453.pdf
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Publisher Info
Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 0453.

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Length: 39 pages
Date of creation: 16 Jun 2001
Date of revision:
Handle: RePEc:hhs:hastef:0453

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Related research
Keywords: Work injury insurance; Panel data;

Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Private Pensions
J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion

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This page was last updated on 2009-12-18.


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