Hazard Pay in Unsafe Jobs: Theory, Evidence, and Policy Implications

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Abstract
Critics of OSHA argue that an unregulated labor market gives firms incentives to improve working conditions. Analysis of the relation between wages and hazardous working conditions confirms that workers in hazardous jobs are paid marginally more than comparable workers in safe jobs. But hazardous occupations are concentrated in low-skill and low-pay strata. The empirical findings have important implications for "right-to-know" and related occupational health strategies.

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