Willingness to pay for workplace amenities

Massimo Anelli and Felix Koenig

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: We develop a revealed preference approach to measure the value of workplace amenities by analyzing how variation in non-wage job attributes affects excess mass in the earnings distribution at budget discontinuities. The approach formalizes the idea that workers are less responsive to monetary incentives when amenities constitute a larger share of total compensation. Applying this method to workplace safety during COVID-19 waves, we find that workers are willing to sacrifice 9% of their earnings to reduce weekly fatality risks by one in 100,000. The findings suggest that conventional hedonic regressions substantially under-estimate the value of workplace safety.

Keywords: non-wage amenities; labor supply; bunching; workplace safety; value of life; job satisfaction (search for similar items in EconPapers)
Date: 2025-05-06
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