Are Workers Sufficiently Compensated for Being in a Dangerous Job? Evidence from the European Labor Market
40 Pages Posted: 10 Jun 2009
Date Written: June 8, 2009
This article tests whether or not workers are indifferent between risky and safe jobs in labor market equilibrium as long as wages serve as a utility equalizing device. Using a partial measure of overall job satisfaction - satisfaction with the job related risk - it examines whether or not the wage differentials act as a utility equalizing device on only one job characteristic: the job risk. It uses selectivity corrected models. It turns out that it is important to adjust for selectivity. Results show that wage differentials do not exclusively compensate for workers being in dangerous jobs.
Keywords: Satisfaction with Job Risk, Compensating Wage Differentials, Dangerous Job
JEL Classification: C23, J31
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
By Lisa Magnani
By Ambra Poggi