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Are Dangerous Jobs Paid Better? European Evidence

In: New Analyses of Worker Well-Being

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  • Nikolaos Georgantzis
  • Efi Vasileiou

Abstract

This article tests whether workers are indifferent between risky and safe jobs provided that, in labor 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.

Suggested Citation

  • Nikolaos Georgantzis & Efi Vasileiou, 2014. "Are Dangerous Jobs Paid Better? European Evidence," Research in Labor Economics, in: New Analyses of Worker Well-Being, volume 38, pages 163-192, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:rleczz:s0147-9121(2013)0000038005
    DOI: 10.1108/S0147-9121(2013)0000038005
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    More about this item

    Keywords

    Satisfaction with job risk; compensating wage differentials; dangerous job; C23; J31;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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