Journal of Risk and Uncertainty

, Volume 11, Issue 3, pp 205–217

Risk-taking activities and heterogeneity of job-risk tradeoffs

  • Joni Hersch
  • Todd S. Pickton
Article

Abstract

Using data from a large national sample, this article examines how individual differences in risk attitudes affect wage-risk tradeoffs. Smoking and seat belt use are used as proxies for individual willingness to bear risk. Workers who by their behavior indicate a high value of safety-e.g., nonsmokers and seat belt wearers-receive a higher compensating differential per unit of job risk than do workers who engage in either one of the risky behaviors. For the overall sample, the implicit value of a lost workday injury is $79,632. This value ranges from $54,878 for smokers who do not wear a seat belt, to $102,552 for nonsmokers who wear a seat belt.

Key words

Smoking seat belt job risk compensating differentials value of life 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Kluwer Academic Publishers 1995

Authors and Affiliations

  • Joni Hersch
    • 1
  • Todd S. Pickton
    • 2
  1. 1.Department of Economics and FinanceUniversity of WyomingLaramie
  2. 2.Department of Economics and FinanceUniversity of WyomingLaramie

Personalised recommendations