A more general and unified measure for valuing labour market risk

Abstract

The willingness-to-pay for labour market safety is estimated using a single and more general measure of risk than previous studies. Compensating wage premiums are estimated for both fatal and non-fatal injury risk using a measure of lost work years. The estimates of wage premiums are then used to infer willingness-to-pay for labour market safety. The risk of injury measure takes into account different aspects of risk and can be applied outside the labour market.