Estimating British workers' demand for safety
Document Type
Journal article
Source Publication
Applied Economics
Publication Date
1-1-1999
Volume
31
Issue
10
First Page
1265
Last Page
1271
Publisher
Routledge Journals
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.
DOI
10.1080/000368499323472
Print ISSN
00036846
Publisher Statement
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Full-text Version
Publisher’s Version
Language
English