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Hazardous Agrochemicals, Smoking, and Farmers’ Differences in Wage-Risk Tradeoffs

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  • Nastis, Stefanos A.
  • Michailidis, Anastasios

Abstract

This paper utilizes the theory of compensating differentials for job risks from the labor economics literature to evaluate farmers’ differences in wage-risk tradeoffs. In the context of job risks, the theory predicts that farmers who place a lower value on health status are willing to work for lower compensation on a risky job. The aim of the paper is to evaluate how the observed wage-risk tradeoff is affected by individual heterogeneity in risk preferences, by acknowledging variations in farmers’ revealed attitudes toward risk, both in job-related and non-job activities. The job risk measure employed is self-reported job risk of low back pain, the most recurring health risk faced by farmers. The job-related risky activity is the application of hazardous agrochemicals. The non-job activity is smoking. The primary finding of the study is that individual heterogeneity in risk attitudes is an important determinant of the risk premium workers receive, i.e., individual differences in other health-related activities are influential determinants of the observed wage-risk tradeoff.

Suggested Citation

  • Nastis, Stefanos A. & Michailidis, Anastasios, 2010. "Hazardous Agrochemicals, Smoking, and Farmers’ Differences in Wage-Risk Tradeoffs," 120th Seminar, September 2-4, 2010, Chania, Crete 109389, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa120:109389
    DOI: 10.22004/ag.econ.109389
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    References listed on IDEAS

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    Cited by:

    1. Ioanna G. Gkiza & Stefanos A. Nastis, 2017. "Health and Women’s Role in Agricultural Production Efficiency," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(3), pages 428-440.
    2. Jane Mills & Hannah Chiswell & Peter Gaskell & Paul Courtney & Beth Brockett & George Cusworth & Matt Lobley, 2021. "Developing Farm-Level Social Indicators for Agri-Environment Schemes: A Focus on the Agents of Change," Sustainability, MDPI, vol. 13(14), pages 1-22, July.
    3. Stefanos A. Nastis & Konstadinos Mattas & George Baourakis, 2019. "Understanding Farmers’ Behavior towards Sustainable Practices and Their Perceptions of Risk," Sustainability, MDPI, vol. 11(5), pages 1-13, March.

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