Are dangerous jobs paid better? European evidence
Georgantzis, N. and Vasileiou, E. (2013) Are dangerous jobs paid better? European evidence. Research in Labor Economics, 38. pp. 163-192. ISSN 0147-9121
To link to this item DOI: 10.1108/S0147-9121(2013)0000038005
This article tests whether workers are indifferent between risky and safe jobs provided that, in labour 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.