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The Value of a Statistical Injury: New Evidence from the Swiss Labor Market

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  • Andreas Kuhn
  • Oliver Ruf

Abstract

We study the monetary compensation for non-fatal accident risk in Switzerland using the number of accidents within cells defined over industry x skill-level of the job and capitalizing on the partial panel structure of our data. Our results show that using accident risk at a lower level of aggregation, using narrower samples of workers, and using the wage component that is specific to the firm all yield higher (i.e. more positive) estimates of risk compensation. However, we only find a statistically significant positive compensation for non-fatal accident risk for workers in jobs with the lowest skill-level. Our preferred estimate for this group of workers yields an estimate of about 35,000 Swiss francs per prevented injury per year.

Suggested Citation

  • Andreas Kuhn & Oliver Ruf, 2013. "The Value of a Statistical Injury: New Evidence from the Swiss Labor Market," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 149(I), pages 57-86, March.
    • Handle: RePEc:ses:arsjes:2013-i-3
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    References listed on IDEAS

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    2. Katharina Drescher & Benedikt Janzen, 2023. "When Weather Wounds Workers: The Impact of Temperature on Workplace Accidents," Working Papers 226, Bavarian Graduate Program in Economics (BGPE).
    3. Rheinberger, Christoph M. & Schläpfer, Felix & Lobsiger, Michael, 2018. "A novel approach to estimating the demand value of public safety," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 285-305.

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    More about this item

    Keywords

    Compensating wage differentials; value of a statistical injury; risk measurement;
    All these keywords.

    JEL classification:

    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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