IDEAS home Printed from https://ideas.repec.org/p/cep/cepdps/dp2100.html

Willingness to pay for workplace amenities

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://cep.lse.ac.uk/pubs/download/dp2100.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Massimo Anelli & Felix Koenig, 2021. "Willingness to Pay for Workplace Safety," CESifo Working Paper Series 9469, CESifo.
    2. Aghion, Philippe & Akcigit, Ufuk & Lequien, Matthieu & Stantcheva, Stefanie, 2017. "Tax simplicity and heterogeneous learning," LSE Research Online Documents on Economics 86613, London School of Economics and Political Science, LSE Library.
    3. Niels Johannesen & Thomas Tørsløv & Ludvig Wier, 2016. "Are less developed countries more exposed to multinational tax avoidance? Method and evidence from micro-data," WIDER Working Paper Series 010, World Institute for Development Economic Research (UNU-WIDER).
    4. Nicola Fuchs-Schündeln & Dirk Krueger & André Kurmann & Etienne Lalé & Alexander Ludwig & Irina Popova, 2023. "The Fiscal and Welfare Effects of Policy Responses to the Covid-19 School Closures," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 71(1), pages 35-98, March.
    5. Bravata, Dena & Cantor, Jonathan & Sood, Neeraj & Whaley, Christopher, 2025. "Back to school: The effect of school visits during COVID-19 on COVID-19 outcomes," Journal of Health Economics, Elsevier, vol. 102(C).
    6. Godin, M. & Hindriks, J., 2015. "A Review of Critical Issues on Tax Design and Tax Administration in a Global Economy and Developing Countries," LIDAM Discussion Papers CORE 2015028, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Harbatkin, Erica & Strunk, Katharine O. & McIlwain, Aliyah, 2023. "School turnaround in a pandemic: An examination of the outsized implications of COVID-19 on low-performing turnaround schools, districts, and their communities," Economics of Education Review, Elsevier, vol. 97(C).
    8. Arbex, Marcelo Aarestru & Mattos, Enlinson, 2020. "Limited tax capacity and the optimal taxation of firms," Textos para discussão 539, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    9. R. Lardeux, 2018. "Who Understands The French Income Tax? Bunching Where Tax Liabilities Start," Documents de Travail de l'Insee - INSEE Working Papers g2018-04, Institut National de la Statistique et des Etudes Economiques.
    10. Kuzmanic, Danilo & Valenzuela, Juan Pablo & Claro, Susana & Canales, Andrea & Cerda, Daniela & Undurraga, Eduardo A., 2023. "Socioeconomic disparities in the reopening of schools during the pandemic in Chile," International Journal of Educational Development, Elsevier, vol. 100(C).
    11. Merima Ali & Abdulaziz B. Shifa & Abebe Shimeles & Firew Woldeyes, 2021. "Building Fiscal Capacity in Developing Countries: Evidence on the Role of Information Technology," National Tax Journal, University of Chicago Press, vol. 74(3), pages 591-620.
    12. Becker, Johannes, 2025. "Optimal indirect taxation when firms avoid profit taxes," VfS Annual Conference 2025 (Cologne): Revival of Industrial Policy 325467, Verein für Socialpolitik / German Economic Association.
    13. Hansen, Benjamin & Miller, Keaton & Weber, Caroline, 2022. "Vertical integration and production inefficiency in the presence of a gross receipts tax," Journal of Public Economics, Elsevier, vol. 212(C).
    14. Adhikari, Bibek & Alm, James & Harris, Timothy F., 2021. "Small business tax compliance under third-party reporting," Journal of Public Economics, Elsevier, vol. 203(C).
    15. Simeon Schächtele, 2020. "Tax Responses at Low Taxable Incomes: Evidence from Germany," Fiscal Studies, John Wiley & Sons, vol. 41(2), pages 411-439, June.
    16. Todd Kumler & Eric Verhoogen & Judith Frías, 2020. "Enlisting Employees in Improving Payroll Tax Compliance: Evidence from Mexico," The Review of Economics and Statistics, MIT Press, vol. 102(5), pages 881-896, December.
    17. Konda, Laura & Patel, Elena & Seegert, Nathan, 2022. "Tax enforcement and the intended and unintended consequences of information disclosure," Journal of Public Economics, Elsevier, vol. 212(C).
    18. Drahomir Klimsa & Robert Ullmann, 2023. "Threshold-dependent tax enforcement and the size distribution of firms: evidence from Germany," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(4), pages 1002-1035, August.
    19. Marcelo Bergolo & Gabriel Burdin & Mauricio De Rosa & Matias Giaccobasso & Martín Leites, 2019. "Tax bunching at the Kink in the Presence of Low Capacity of Enforcement: Evidence From Uruguay," Documentos de Trabajo (working papers) 19-05, Instituto de Economía - IECON.
    20. A Parrott, Kristin & Huslage, Melody & Cronley, Courtney, 2022. "Educational equity: A scoping review of the state of literature exploring educational outcomes and correlates for children experiencing homelessness," Children and Youth Services Review, Elsevier, vol. 143(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cep:cepdps:dp2100. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://cep.lse.ac.uk/_new/publications/discussion-papers/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.