Download Free Compensating Wage Differences Book in PDF and EPUB Free Download. You can read online Compensating Wage Differences and write the review.

In this book the author examines and ultimately rejects the conventional economic view that workers who have more dangerous jobs accept their risks voluntarily and are compensated through higher wages. In doing so, he attacks widely used techniques for assigning a monetary value to human life for cost-benefit analysis and other purposes. Arguments are drawn from the history of occupational safety and health, econometric analysis of wage and risk data, and formal models of the labour market. In place of the conventional view, Peter Dorman proposes a view based on new work in decision theory (thick rationality) and the theory of repeated games. These insights are combined with comparative policy analysis to support an approach to risk that promotes both regulatory effectiveness and democratic values. Despite its technical content, the book is written in highly accessible style, and is concerned with matters of general interest in the development of critical social science.
Compensating wage differentials is Adam Smith's idea that wage differences equalize differences in job and worker characteristics. Other than risk of death, however, no job characteristics have consistently been found to affect wages, likely because of problems with self-selection and unobservable job characteristics. We run experiments in an online labor market, randomizing offered pay and job characteristics, thereby overcoming both problems. We find, as predicted by our model, that increasing job disamenities significantly reduces both likelihood of working and amount of work supplied. Correspondingly, the wage increases necessary to compensate workers for worse job disamenities are substantial, supporting the theory.
The papers in this volume present an excellent sampling of the best of current research in labor economics, combining the most sophisticated theory and econometric methods with high-quality data on a variety of problems. Originally presented at a Universities-National Bureau Committee for Economic Research conference on labor markets in 1978, and not published elsewhere, the thirteen papers treat four interrelated themes: labor mobility, job turnover, and life-cycle dynamics; the analysis of unemployment compensation and employment policy; labor market discrimination; and labor market information and investment. The Introduction by Sherwin Rosen provides a thoughtful guide to the contents of the papers and offers suggestions for continuing research.