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Dirty Money: Is there a Wage Premium for Working in a Pollution Intensive Industry

Matthew Cole (), Robert Elliott () and Joanne Lindley ()

Discussion Papers from Department of Economics, University of Birmingham

Abstract: Within a compensating wage differential framework we investigate whether there is a wage premium for working in a pollution intensive industry. Our results for the economy as a whole suggest a small wage premium of approximately one quarter of one percent associated with the risk of working in a dirty job. This premium rises to over fifteen percent for those individuals who work in one of the five dirtiest industries. We also find evidence of a fatal risk wage premium, providing estimates of the value of a statistical life of between £12 million and £19 million (2000 prices).

Keywords: Compensating Wage Differentials; Pollution; Value of Statistical Life (search for similar items in EconPapers)
JEL-codes: J28 J31 Q52 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-env and nep-lab
Date: 2009-11
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Persistent link: https://EconPapers.repec.org/RePEc:bir:birmec:09-13

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