Are dangerous jobs paid better? European evidence
This article tests whether workers are indifferent between risky and safe jobs provided that, in labour market equilibrium, wages should serve as a utility equalizing device. Workers' preferences are elicited through a partial measure of overall job satisfaction: satisfaction with job-related r...
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Published in | IDEAS Working Paper Series from RePEc |
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Main Authors | , |
Format | Paper |
Language | English |
Published |
St. Louis
Federal Reserve Bank of St. Louis
01.01.2012
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Online Access | Get full text |
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Summary: | This article tests whether workers are indifferent between risky and safe jobs provided that, in labour market equilibrium, wages should serve as a utility equalizing device. Workers' preferences are elicited through a partial measure of overall job satisfaction: satisfaction with job-related risk. Given that selectivity turns out to be important, we use selectivity corrected models. Results show that wage differentials do not exclusively compensate workers for being in dangerous jobs. However, as job characteristics are substitutable in workers' utility, they could feel satisfied, even if they were not fully compensated financially for working in dangerous jobs. |
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