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Willingness to pay for workplace amenities

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  • Massimo Anelli
  • Felix Koenig

Abstract

We develop a revealed preference approach to measure the value of workplace amenities by analyzing how variation in non-wage job attributes affects excess mass in the earnings distribution at budget discontinuities. The approach formalizes the idea that workers are less responsive to monetary incentives when amenities constitute a larger share of total compensation. Applying this method to workplace safety during COVID-19 waves, we find that workers are willing to sacrifice 9% of their earnings to reduce weekly fatality risks by one in 100,000. The findings suggest that conventional hedonic regressions substantially under-estimate the value of workplace safety.

Suggested Citation

  • Massimo Anelli & Felix Koenig, 2025. "Willingness to pay for workplace amenities," CEP Discussion Papers dp2100, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp2100
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    1. Michael Carlos Best & Anne Brockmeyer & Henrik Jacobsen Kleven & Johannes Spinnewijn & Mazhar Waseem, 2015. "Production versus Revenue Efficiency with Limited Tax Capacity: Theory and Evidence from Pakistan," Journal of Political Economy, University of Chicago Press, vol. 123(6), pages 1311-1355.
    2. Zachary Parolin & Emma K. Lee, 2021. "Large socio-economic, geographic and demographic disparities exist in exposure to school closures," Nature Human Behaviour, Nature, vol. 5(4), pages 522-528, April.
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