Estimating British workers' demand for safety

Xiangdong WEI

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

4 Citations (Scopus)


This paper estimates workers' demand function for job safety using the British General Household Survey data. The estimation employs Rosen's two-stage procedure. The main difference between our study and those done in the past is that we estimate hedonic price equations with data sets from two labour markets. Our approach overcomes the usual identification problems associated with the application of Rosen's method. The estimation shows that there is a significant wage compensation for job risk in the UK. The willingness-to-pay for a 1/100 000 decrease of annual job fatal accident rate from our estimated workers' demand function is about £6 in 1973 prices. The estimation of a demand function for safety also enables the derivation of workers' willingness-to-pay for non-marginal change of job risk, and this can be used for cost-benefit analysis on projects involving such non-marginal changes.
Original languageEnglish
Pages (from-to)1265-1271
Number of pages7
JournalApplied Economics
Issue number10
Publication statusPublished - 1 Jan 1999

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