On the Measurement of Job Risk in Hedonic Wage Models

Dan Black and Thomas Kniesner

No 200306, NCEE Working Paper Series from National Center for Environmental Economics, U.S. Environmental Protection Agency

Abstract: We examine the incidence, form, and research consequences of measurement error in measures of fatal injury risk in U.S. workplaces using both BLS and NIOSH data. These data are commonly used in hedonic wage studies. Despite the fact that each of our measures of job risk purport to measure the same thing – the risk of a fatality while on the job – the various measures of job risk are not highly correlated, with the maximum correlation being 0.53. Indeed, many of the estimated value of statistical life estimates are negative. We find that the National Institute of Safety and Health’s industry risk measure produces implicit value of life estimates most in line with both economic theory and the mode result for the existing literature than other risk measures examined. Because we find non-classical measurement error that differs across risk measures and is not independent of other regressors, innovative statistical procedures need be applied to obtain statistically improved estimates of wage-fatality risk tradeoffs.

Keywords: hedonic wage equation; price of risk; implicit value of life; measurement error (search for similar items in EconPapers)
Pages: 28 pages
Date: 2003-08, Revised 2003-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (74)

Downloads: (external link)
https://www.epa.gov/environmental-economics/workin ... -hedonic-wage-models First version, 2003 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Journal Article: On the Measurement of Job Risk in Hedonic Wage Models (2003)
Working Paper: On the Measurement of Job Risk in Hedonic Wage Models (2003)
Working Paper: On the Measurement of Job Risk in Hedonic Wage Models (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nev:wpaper:wp200306

Access Statistics for this paper

More papers in NCEE Working Paper Series from National Center for Environmental Economics, U.S. Environmental Protection Agency Contact information at EDIRC.
Bibliographic data for series maintained by Cynthia Morgan ().