Compensating Wage Differentials and the Duration of Wage Loss

摘要: Several reasons are offered why workers will receive larger compensating wage differentials for increases in the duration of losses than probability loss that produce same expected loss. A formal model occupational choice is developed shows extent to which compensation increased exceeds risk. Using Panel Study Income Dynamics data linked industry on injuries and unemployment, we find:1) Nearly all differential due workplace loss; 2) Similarly, nearly cyclical unemployment duration, especially beyond 26 weeks usually compensated by insurance. The risk injury union nonunion workers, while those smaller workers.