Dirty money: Is there a wage premium for working in a pollution intensive industry? |
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| Authors: | Matthew A Cole Robert J R Elliott Joanne K Lindley |
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| Institution: | (1) Department of Economics, University of Birmingham, Edgbaston, Birmingham, B15 2TT, UK;(2) Department of Economics, University of Sheffield, 9 Mappin Street, Sheffield, S10 2TN, UK;; |
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| 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). |
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