Job Hazard Premia and Worker Risk Profiles
Abstract:
We provide a fresh analysis of the theory of compensating wage differential s (CWD) using detailed data on self-reported workplace environment conditio ns, from a representative 5-wave (1990-2010, 5-year spaced) panel survey of workers, which we merge to the Danish yearly longitudinal linked-employer- employee-data. Our study extends previous CWD empirical analysis in several ways. In standard hedonic wage equations, we control for both individual a nd firm-specific time-invariant unobserved heterogeneity. In addition, we c an account for selection of workers into hazardous jobs by proxying for ind ividual heterogeneity in risk attitudes with information on smoking behavio r and having young children. In ongoing analysis, we also estimate the marg inal willingness to pay for amenities using worker employment transition hi stories. Our preliminary findings are that accounting for both time-invaria nt and time-varying worker unobserved heterogeneity is crucial in this type of empirical exercise, and that, among a large host of job non-pecuniary c haracteristics that vary extensively in our data, only some job disamenitie s, such as worktime inflexibility, commuting to work, and monotonous job ta sks, are compensated for.
DTSTAMP:20260406T104002Z DTSTART:20150428T130000Z DTEND:20150428T140000Z SEQUENCE:0 TRANSP:OPAQUE END:VEVENT END:VCALENDAR