Journal of Labor Economics Vol. 8 No. 1, Part 2 1990
Compensating Wage Differentials and the Duration of Wage Loss
Abstract
A formal model of occupational choice is developed that shows the extent to which the compensation for increased duration exceeds that for increased risk. Using the Panel Study of Income Dynamics linked to industry data on injuries and unemployment, we find nearly all the compensating wage differential for losses due to workplace injuries is for increases in the duration of loss and similarly for losses due to cyclical unemployment. The compensating differentials for risk of injury are larger for union than for nonunion workers, while those for cyclical unemployment are smaller for union workers.
- DOI
- 10.1086/298249
- Volume
- 8
- Issue
- 1, Part 2
- Pages
- S175-S197
- Language
- en
- Sources
- openalex crossref