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Dirty money: Is there a wage premium for working in a pollution intensive industry?

  • Matthew Cole
  • Robert Elliott


  • Joanne Lindley

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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Article provided by Springer in its journal Journal of Risk and Uncertainty.

Volume (Year): 39 (2009)
Issue (Month): 2 (October)
Pages: 161-180

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Handle: RePEc:kap:jrisku:v:39:y:2009:i:2:p:161-180
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