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Compensating wages for risk of death or industry rents?
Department of Economics, San Jose State University, San Jose, California 1992 May; :1-43
The positive correlations found between job related death rates and wages were investigated to determine whether they are due to compensating wages, or to interindustry wage differences (industry rents). Mortality data were derived from NIOSH and Bureau of Labor Statistics information. Data on workers were derived from the Panel Study of Income Dynamics, the Current Population Survey, and the Quality of Employment Survey and were analyzed to determine whether estimates of compensating wages for job related mortality were biased by effects of industry rents. Industry rents were accounted for by including dummy variables representing broad industry divisions. After dummy variables for only six or seven broad industries were entered into wage equations, signs changed, statistical significance evaporated and t-statistics dropped precipitously for estimated coefficients on job related fatality variables in all sub samples. The findings supported the argument that the correlation between industry rents and job hazards was largely responsible for positive and statistically significant estimated coefficients on fatality rate variables seen in previous studies. The author suggests that until the death rates available to researchers are placed on job application forms and discussed in job interviews as wages are, the information problem will continue to plague attempts to estimate compensating wages for job related deaths.
NIOSH-Grant; Grants-other; Mortality-surveys; Risk-analysis; Epidemiology; Occupational-hazards
Economics San Jose State Univ Foundation One Washington Square San Jose, CA 95192-0114
Final Grant Report
NTIS Accession No.
Other Occupational Concerns; Grants-other
Department of Economics, San Jose State University, San Jose, California
San Jose State University, San Jose, California
Page last reviewed: May 5, 2020
Content source: National Institute for Occupational Safety and Health Education and Information Division