Same Same Wage 50hour 50hour Annual job fatality risk None 18000 Revealed

Same same wage 50hour 50hour annual job fatality risk

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Same Same Wage $50/hour $50/hour Annual job fatality risk None 1/8,000 Revealed Preference: Hedonic Wage StudiesBased on premise that individuals willbe compensated for taking on morerisk in the work placeConsider two companies with similarjob openings. Both companies offerthe same wage and jobs have thesame characteris?cs EXCEPT …Valuing Benefits: Revealed Preference Methods
Hedonic WageMarketW(p) here is the set of wage-riskcombina?ons offered andagreed-to in workplaces.Two specific workers are shownA lower-paying but safer job isat risk = p1and wage is w1(p1)A higher-paying but risker one isat risk=p2and wage=w2(p2)These aVract different workers,but the set of all of them givesus the hedonic price func?onw(p).Valuing Benefits: Revealed Preference Methods
Hedonic Wage StudiesRegress wage (or log wage) on worker and job characteris?cs to arrive athedonic wage func?on (wage as a func?on of risk)Hedonic Price = shadow or implicit price of a characteris?c of a commodity

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