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Dirty Money: Is there a Wage Premium for Working in a Pollution Intensive Industry

  • Matthew A Cole
  • Robert J R Elliott
  • Joanne K 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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Paper provided by Department of Economics, University of Birmingham in its series Discussion Papers with number 09-13.

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Length: 36 pages
Date of creation: Nov 2009
Date of revision:
Handle: RePEc:bir:birmec:09-13
Contact details of provider: Postal: Edgbaston, Birmingham, B15 2TT
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