Wage-Risk Premiums and Workmen's Compensation: A Refinement of Estimates of Compensating Wage-Differential
نویسنده
چکیده
;. Current thought is that the most appropriate method for determining the value of life or of reduced risk of injury is through estimation of a revealed market value individuals place on risk. That theory assumes that risk is transacted in the market in the form of wage premiums workers receive for engaging in higher risk jobs. Hedonic price estimation techniques have been used to estimate that premium. We argue in this paper that the value of life derived from estimates of wage-risk premiums are biased upward because they fail to account for various forms of insurance. Taking into account only one such form of insurance, workmen's compensation, leads to reductions in estimates of value of life of from 23 to 27 percent.
منابع مشابه
Trucking Deregulation and Labor Earnings: Is the Union Premium a Compensating Differential?
This paper examines wage determination among union and nonunion truck drivers using the 96 monthly Current Population Surveys for 1983-90. Union density in the previously regulated for-hire sector of the trucking industry fell from about 60 percent during the regulatory period of the 1970s to about 25 percent by 1990. Union log wage premiums fell from 0.40 in the 1970s to 0.30 or below in the 1...
متن کاملWages and Risks at the Workplace: Evidence from Linked Firm-Worker Data
One of the oldest views on wage determination holds that wage differences reflect compensation for hedonic aspects of jobs such as the risk of injuries and occupational diseases. This paper studies the importance of such compensating wage differentials using longitudinal information on workers and firms. This data allows us to disentangle the wage and risk components that are attached to the wo...
متن کاملJob Dispersion and Compensating Wage Differentials
The empirical literature on compensating wage differentials has a mixed history. While there have been some successes, much of this research finds weak support for the theory of equalizing differences. We argue that these negative results can be explained by bias in estimated compensating wage differential regressions. The source of this bias is dispersion in total job values, or “job dispersio...
متن کاملEstimating the Risk Premium of Law Enforcement Officers
This paper is an empirical study to estimate the risk premium or compensating differential for law enforcement officers. First, we use the human capital model to form a baseline regression using data from the Current Population Survey from 1989 to 1999. The second regression includes crime rates from around the United States to determine how the risk premium of officers' change as crime rates r...
متن کاملThe Economics of Occupational Safety and Health
Description: The Economics of Occupational Safety and Health examines occupational risks that influence the safety decisions of a firm including: wage premiums paid to attract workers to risky jobs; insurance payments to injured workers including sick leave and workers' compensation benefits; premiums for workers' compensation insurance; government fines for safety violations and injury-related...
متن کامل