Estimating British workers' demand for safety

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

    4 Citations (Scopus)

    Abstract

    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
    Volume31
    Issue number10
    DOIs
    Publication statusPublished - 1 Jan 1999

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    Safety
    Workers
    Demand function
    Willingness-to-pay
    Wages
    Accidents
    Identification problem
    Survey data
    Cost-benefit analysis
    Hedonic prices
    Labour market
    Household survey

    Cite this

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    title = "Estimating British workers' demand for safety",
    abstract = "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.",
    author = "Xiangdong WEI",
    year = "1999",
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    doi = "10.1080/000368499323472",
    language = "English",
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    Estimating British workers' demand for safety. / WEI, Xiangdong.

    In: Applied Economics, Vol. 31, No. 10, 01.01.1999, p. 1265-1271.

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

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    AU - WEI, Xiangdong

    PY - 1999/1/1

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    N2 - 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.

    AB - 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.

    UR - http://commons.ln.edu.hk/sw_master/6919

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