Compensating wage differentials for workplace accidents : evidence for union and nonunion workers in the UK

W. S. SIEBERT, X. WEI

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

29 Citations (Scopus)

Abstract

This article measures compensating wage differentials for job risks for union and nonunion workers. Job risk is made endogenous to avoid a selectivity bias arising if more able people choose safer jobs. We find that this adjustment has a considerable effect on the union group, raising their fatal risk premium above that of non union workers. This implies that there is more variation in unmeasured ability in the unionized group, and that job risk is an inferior good. The fact that unionized workers are also found in safer jobs might therefore be attributable to their greater wealth, rather than to greater“knowledge” in the unionized plant. The estimated statistical value of a life is £8.8 million in 1990 prices for union workers, with nonunion workers about 20% lower.
Original languageEnglish
Pages (from-to)61-76
Number of pages16
JournalJournal of Risk and Uncertainty
Volume9
Issue number1
DOIs
Publication statusPublished - Feb 1994
Externally publishedYes

Fingerprint

Work place
Accidents
Workers
Compensating wage differentials
Wealth
Risk premium
Selectivity bias
Value of a statistical life

Keywords

  • Workplace accidents
  • compensating wage differentials
  • unions

Cite this

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Compensating wage differentials for workplace accidents : evidence for union and nonunion workers in the UK. / SIEBERT, W. S.; WEI, X.

In: Journal of Risk and Uncertainty, Vol. 9, No. 1, 02.1994, p. 61-76.

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

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