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Risk Compensation for Hospital Workers: Evidence from Relative Wages of Janitors

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  • Keith A. Bender
  • Hosne A. Mridha
  • James Peoples
Abstract
This study, using individual worker data on janitors taken from the 1985–2001 Current Population Survey and industry injury data from the Bureau of Labor Statistics, examines whether compensation for working in a high-risk work environment contributes to the relatively high wage rates of hospital janitors. The authors find that when the analysis corrects for risk endogeneity (workers' tendency to sort themselves according to their tolerance for workplace risk), risk compensation increases wage rates by 13.4% for union hospital janitors and is a major source of their wage advantage over nonunion janitors in other industries. Since this risk compensation is only available to union workers, the authors interpret this result as the effect of the union voice mechanism.

Suggested Citation

  • Keith A. Bender & Hosne A. Mridha & James Peoples, 2006. "Risk Compensation for Hospital Workers: Evidence from Relative Wages of Janitors," ILR Review, Cornell University, ILR School, vol. 59(2), pages 226-242, January.
    • Handle: RePEc:sae:ilrrev:v:59:y:2006:i:2:p:226-242
    DOI: 10.1177/001979390605900203
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    References listed on IDEAS

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    7. Peter Dorman & Paul Hagstrom, 1998. "Wage Compensation for Dangerous Work Revisited," ILR Review, Cornell University, ILR School, vol. 52(1), pages 116-135, October.
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    9. Edward J. Schumacher & Barry T. Hirsch, 1997. "Compensating Differentials and Unmeasured Ability in the Labor Market for Nurses: Why Do Hospitals Pay More?," ILR Review, Cornell University, ILR School, vol. 50(4), pages 557-579, July.
    10. Arnould, Richard J & Nichols, Len M, 1983. "Wage-Risk Premiums and Workers' Compensation: A Refinement of Estimates of Compensating Wage Differential," Journal of Political Economy, University of Chicago Press, vol. 91(2), pages 332-340, April.
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    Cited by:

    1. Thomas Leoni, 2010. "What drives the perception of health and safety risks in the workplace? Evidence from European labour markets," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 37(2), pages 165-195, May.
    2. Anne R Pebley & Noreen Goldman & Theresa Andrasfay & Boriana Pratt, 2021. "Trajectories of physical functioning among older adults in the US by race, ethnicity and nativity: Examining the role of working conditions," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-22, March.
    3. Jin-Long Liu & Chia-Hui Huang & Chih-Hai Yang, 2013. "Technological Change, Job Risk, and Wage Premium: Evidence from Taiwan," The Developing Economies, Institute of Developing Economies, vol. 51(2), pages 186-202, June.
    4. Dieter Verhaest & Stef Adriaenssens, 2022. "Compensating wage differentials in formal and informal jobs," Kyklos, Wiley Blackwell, vol. 75(1), pages 106-126, February.
    5. James Peoples & Bin Wang, 2007. "Privatization and Labor Cost Savings: Evidence from Health Care Services," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(2), pages 145-157, June.
    6. Donghyun Kim & Up Lim, 2017. "Wage Differentials between Heat-Exposure Risk and No Heat-Exposure Risk Groups," IJERPH, MDPI, vol. 14(7), pages 1-17, June.
    7. Anthony E. Boardman & Aidan R. Vining, 2010. "Assessing the Economic Worth of Public–Private Partnerships," Chapters, in: Graeme A. Hodge & Carsten Greve & Anthony E. Boardman (ed.), International Handbook on Public–Private Partnerships, chapter 8, Edward Elgar Publishing.
    8. Keith A. Bender & Hosne Mridha, 2011. "The Effect of Local Area Unemployment on Compensating Wage Differentials for Injury Risk," Southern Economic Journal, John Wiley & Sons, vol. 78(2), pages 287-307, October.

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