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Long-term Illness and Wages: The Impact of the Risk of Occupationally Related Long-term Illness on Earnings

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  • Robert Sandy
  • Robert F. Elliott

Abstract

Long-term illness (LTI) is a more prevalent workplace risk than fatal accidents but there is virtually no evidence for compensating differentials for a broad measure of LTI. In 1990 almost 3.4 percent of the U.K. adult population suffered from a LTI caused solely by their working conditions. This paper provides the first estimates of compensating differentials for a broad measure of work-related LTI. Using data on self-reported illnesses we find significant CDs for male manual workers but none for male nonmanual workers. These results are robust to the addition of variables for the risk of accidental at-work deaths.

Suggested Citation

  • Robert Sandy & Robert F. Elliott, 2005. "Long-term Illness and Wages: The Impact of the Risk of Occupationally Related Long-term Illness on Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 40(3).
  • Handle: RePEc:uwp:jhriss:v:40:y:2005:i:2:p744-768
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    References listed on IDEAS

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    1. Siebert, W Stanley & Wei, X, 1994. "Compensating Wage Differentials for Workplace Accidents: Evidence for Union and Nonunion Workers in the UK," Journal of Risk and Uncertainty, Springer, vol. 9(1), pages 61-76, July.
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    7. Lott, John R, Jr & Manning, Richard L, 2000. "Have Changing Liability Rules Compensated Workers Twice for Occupational Hazards? Earnings Premiums and Cancer Risks," The Journal of Legal Studies, University of Chicago Press, vol. 29(1), pages 99-130, January.
    8. Peter Dorman & Paul Hagstrom, 1998. "Wage Compensation for Dangerous Work Revisited," ILR Review, Cornell University, ILR School, vol. 52(1), pages 116-135, October.
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    Cited by:

    1. Pichler, Stefan & Ziebarth, Nicolas R., 2017. "The pros and cons of sick pay schemes: Testing for contagious presenteeism and noncontagious absenteeism behavior," Journal of Public Economics, Elsevier, vol. 156(C), pages 14-33.
    2. Stefan Pichler & Nicolas Ziebarth, 2016. "The Pros and Cons of Sick Pay Schemes: Testing for Contagious Presenteeism and Shirking Behavior," NBER Chapters,in: Social Insurance Programs (Trans-Atlantic Public Economic Seminar - TAPES) National Bureau of Economic Research, Inc.
    3. Pichler, Stefan & Ziebarth, Nicolas R., 2015. "The Pros and Cons of Sick Pay Schemes: A Method to Test for Contagious Presenteeism and Shirking Behavior," IZA Discussion Papers 8850, Institute for the Study of Labor (IZA).
    4. Xiangdong Wei, 2007. "Wage compensation for job-related illness: Evidence from a matched employer and employee survey in the UK," Journal of Risk and Uncertainty, Springer, vol. 34(1), pages 85-98, February.
    5. Benkhalifa, Abdelaziz, 2010. "The value of mortality risk reductions in the Tunisian building and manufacturing industries," MPRA Paper 63617, University Library of Munich, Germany.
    6. Mark V. Pauly & Sean Nicholson & Daniel Polsky & Marc L. Berger & Claire Sharda, 2008. "Valuing reductions in on-the-job illness: 'presenteeism' from managerial and economic perspectives," Health Economics, John Wiley & Sons, Ltd., vol. 17(4), pages 469-485.
    7. Konstantinos, Pouliakas & Ioannis, Theodossiou, 2010. "An Inquiry Into the Theory, Causes and Consequences of Monitoring Indicators of Health and Safety At Work," MPRA Paper 20336, University Library of Munich, Germany.
    8. Robert Elliott & Ada Ma & Matt Sutton & Diane Skatun & Nigel Rice & Stephen Morris & Alex McConnachie, 2010. "The role of the staff MFF in distributing NHS funding: taking account of differences in local labour market conditions," Health Economics, John Wiley & Sons, Ltd., vol. 19(5), pages 532-548.
    9. repec:eee:socmed:v:202:y:2018:i:c:p:79-88 is not listed on IDEAS
    10. Benkhalifa, Abdelaziz, 2014. "Rôle du syndicat dans la détermination de la valeur de la vie statistique en Tunisie
      [Trade union role in determining the value of a statistical life in Tunisia]
      ," MPRA Paper 63736, University Library of Munich, Germany.
    11. Pichler, Stefan & Ziebarth, Nicolas R., 2016. "Labor Market Effects of US Sick Pay Mandates," IZA Discussion Papers 9867, Institute for the Study of Labor (IZA).
    12. Frijters, Paul & Johnston, David W. & Shields, Michael A., 2008. "Happiness Dynamics with Quarterly Life Event Data," IZA Discussion Papers 3604, Institute for the Study of Labor (IZA).

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