Are dangerous jobs paid better? European evidence
Abstract
This article tests whether workers are indifferent between risky and safe jobs provided that, in labour market equilibrium, wages should serve as a utility equalizing device. Workers’ preferences are elicited through a partial measure of overall job satisfaction: satisfaction with job-related risk. Given that selectivity turns out to be important, we use selectivity corrected models. Results show that wage differentials do not exclusively compensate workers for being in dangerous jobs. However, as job characteristics are substitutable in workers’ utility, they could feel satisfied, even if they were not fully compensated financially for working in dangerous jobs.Download Info
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Paper provided by Economics Department, Universitat Jaume I, Castellón (Spain) in its series Working Papers with number 2012/18.Length: 46 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:jau:wpaper:2012/18
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Keywords: Satisfaction with Job Risk; Compensating Wage Differentials; Dangerous Job;Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-17 (All new papers)
- NEP-EUR-2012-11-17 (Microeconomic European Issues)
- NEP-LAB-2012-11-17 (Labour Economics)
- NEP-LMA-2012-11-17 (Labor Markets - Supply, Demand, & Wages)
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