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Compensating Wage Differentials for Fatal Injury Risk in Australia, Japan, and the United States

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  • Kniesner, Thomas J
  • Leeth, John D

Abstract

Our research infers the effects of institutionalized wage setting and length worker-firm attachment by comparing estimated compensating wage differentials for fatal injury risk in Japanese, Australian, and U.S. manufacturing. Hedonic labor market equilibrium regressions for Japan reveal a statistically fragile compensating wage differential of 0 percent to 1.4 percent for exposure to the average fatality risk compared to employment in a perfectly safe workplace. Australian workers receive a statistically robust 2.5 percent estimated wage premium. Using new data on work-related fatalities, we find a 1 percent compensating wage differential in U.S. manufacturing that becomes more positive and statistically less significant as data are aggregated. Copyright 1991 by Kluwer Academic Publishers

Suggested Citation

  • Kniesner, Thomas J & Leeth, John D, 1991. "Compensating Wage Differentials for Fatal Injury Risk in Australia, Japan, and the United States," Journal of Risk and Uncertainty, Springer, vol. 4(1), pages 75-90, January.
    • Handle: RePEc:kap:jrisku:v:4:y:1991:i:1:p:75-90
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