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Changing Inequality in Markets for Workplace Amenities

Daniel Hamermesh

The Quarterly Journal of Economics, 1999, vol. 114, issue 4, 1085-1123

Abstract: Among U. S. industries where earnings rose relatively from 1979–1995, injury rates declined relatively. Obversely, during the 1960s narrowing interindustry wage differentials were associated with an increase in the relative risk of injury in high-wage industries. Evidence from the NLSY suggests similar results among full-time workers between 1988 and 1996. Between 1973 and 1991 the disamenity of evening/night work was increasingly borne by low-wage male workers. Changing earnings inequality has understated changing inequality in the returns to work. Assuming skill-neutral changes in the cost of reducing these disamenities, estimates of the implied income elasticities of demand for amenities are well above unity.

Date: 1999
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The Quarterly Journal of Economics is currently edited by Robert J. Barro, Lawrence F. Katz, Nathan Nunn, Andrei Shleifer and Stefanie Stantcheva

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