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Wage Compensation for Risk: The Case of Turkey

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  • Polat, Sezgin

    (Galatasaray University Economic Research Center)

Abstract

In this article, I estimate the premium associated with fatal and non-fatal risk within broad industry categories, using official figures provided by the Ministry of Labor and Social Security and wage data from the 2010 and 2011 Household Labor Force Surveys. The results show only positive and significant fatal risk premiums in the manufacturing sector, whereas injury risk premiums exist in both the manufacturing and industry-wide samples. When wage heterogeneity is allowed, fatal risk compensation increases along the distribution, while that of injury risk follows an inverse-u pattern. Compared to similar country cases, the VSL and VSI estimates are relatively small and not significant for low wage earners. Industry averages show that longer working hours are correlated with accidents rates which implies the importance of firm heterogeneity and institutional factors on the high level and variance, particularly for Turkey.

Suggested Citation

  • Polat, Sezgin, 2013. "Wage Compensation for Risk: The Case of Turkey," GIAM Working Papers 13-11, Galatasaray University Economic Research Center.
    • Handle: RePEc:ris:giamwp:2013_011
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    References listed on IDEAS

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    Cited by:

    1. Ahmad Mujtaba Khan & Asma Hyder, 2017. "The Statistical Value of Injury Risk in Pakistan’s Construction and Manufacturing Sectors," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 22(1), pages 1-18, Jan-June.
    2. Polat, Sezgin, 2016. "Industry Wage Differentials and Working Conditions in Turkey: A Brief Note," MPRA Paper 73165, University Library of Munich, Germany.

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    More about this item

    Keywords

    Value of a statistical life; Value of a statistical injury; Hedonic wages; Quantile regression;
    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

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