SSE/EFI Working Paper Series in Economics and Finance
No 453:
Estimating Compensating Wage Differentials from Worker Mobility
Per Johansson ()
and Mårten Palme ()
Abstract: We estimate the effects of the implementation of a
compulsory work injury insurance in Sweden in 1978 on compensating wage
differentials. This involves two steps. First, we investigate if there are
compensating wage differentials on the Swedish labor market and second, we
assess if these were altered by the reform. We use panel data for the
period 1970 to 1990 with annual information for a sample of blue collar
workers. The econometric model departs from the worker's job mobility
decision. Endogeneity, selection and measurement errors of risk exposure
are considered in the estimation. The estimates show significant
compensating wage differentials for work-related diseases in the female
sub-sample. No significant effect of the reform was found.
Keywords: Work injury insurance; Panel data; (follow links to similar papers)
JEL-Codes: J24; J28; J31; J32; J62; (follow links to similar papers)
39 pages, June 16, 2001
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