on in the labor market By far the most numerous of the various types of

On in the labor market by far the most numerous of

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Assume that individuals correctly perceive job risk and that there is compe??on in the labor marketBy far, the most numerous of the various types of mortality risk studies due inpart to availability of dataRates of occupa?onal injuries and fatali?es by industry are widely available in the USWorker characteris?cs and some?mes percep?ons of job risk are collected through surveysValuing Benefits: Revealed Preference Methods
HedonicWageStudies -DataFrom Viscusi (2013)Valuing Benefits: Revealed Preference Methods
Viscusi’s “Canonical” Wage Equa?on࠵?࠵?(࠵?࠵?)=࠵?+࠵?↑࠵?+࠵?࠵?࠵?࠵?+࠵?࠵?࠵?࠵?+࠵?࠵?࠵?࠵?࠵?+࠵?࠵?whereWi= wage (usually hourly)Xi= vector worker and job characteris?cspi= fatal job risk (usually deaths per 100,000 workers per year)qi= injury job riskWCi= presence of workers’ compensa?onVSL is then defined by:VSL=࠵?࠵?* mean wage ($/hour/worker) * hours/year * # workers=࠵?࠵?* wage * 2000 * 100,000Valuing Benefits: Revealed Preference Methods
Typical Findings from Hedonic Wage RegressionVariableEs-mateAge0.0417Age Squared- 0.0432Black- 0.0960Asian- 0.0744Hispanic- 0.1050Female- 0.1453Educa?on0.0469Married0.0115Union0.1400

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