Dirty money: Is there a wage premium for working in a pollution intensive industry?

Cole, Matthew A.; Elliott, Robert J.R.; Lindley, Joanne

doi:10.1007/s11166-009-9077-x

Cited by 33 publications

(17 citation statements)

References 48 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…A possible explanation is that in some highly specialised, perhaps skill intensive, industries in order to reduce pollution the firm needs to hire more skilled workers and pays them higher wages. Another possible explanation is that the higher wages in the chemicals and plastics industries could be due to pressure from workers to be compensated for the additional risk that they have to take in such sectors, which is consistent with the compensating wage differential argument made by Cole et al (2009).…”

Section: Resultssupporting

confidence: 62%

“…There is, however, also potentially a compensating wage differential argument here. Cole et al (2009) argued that workers would demand higher wages for working in a dirty firm. These authors found that wages are higher in firms in dirty sectors.…”

Section: Empirical Specification and Methodologymentioning

confidence: 99%

“…Cropper and Arriaga-Salinas 1980). A second series examined whether there is a wage premium for working in pollution intensive industries (Cole et al 2009). A third series analysed the extent to which firms shift the burden of mandated social security obligations, or payroll taxes, back on to workers in the form of lower wages (Holmund 1983, Gruber and Krueger 1991, Gruber 1994.…”

Section: Existing Literaturementioning

confidence: 99%

See 2 more Smart Citations

Environmental regulation and wages in China

Mishra

Smyth

2012

Journal of Environmental Planning and Management

View full text Add to dashboard Cite

In this study we examine the extent to which firms pass back the cost of pollution regulation to workers, in the form of lower wages, using a unique matched employer-employee dataset for Shanghai. The benefits and costs of pollution regulation in China are important topics to study as China comes under increasing pressure to move from a single-minded focus on energy-driven economic growth to a more balanced approach to economic growth. The benefits of such a shift, particularly in terms of health, are relatively well studied, but the costs are less so. The hip-pocket effect of pollution regulation on workers' wages is particularly important, given that it is likely to influence public support for a more balanced approach. Our main finding is that the reduction in average wages attributable to firms taking measures to control for pollution is between 13.8% and 18.8%, all things being equal.

show abstract

Section: Resultssupporting

confidence: 62%

Section: Empirical Specification and Methodologymentioning

confidence: 99%

Section: Existing Literaturementioning

confidence: 99%

See 1 more Smart Citation

Environmental regulation and wages in China

Mishra

Smyth

2012

Journal of Environmental Planning and Management

View full text Add to dashboard Cite

show abstract

“…15 These sector data are merged with firm data, which is a standard procedure given the absence of firm level emissions data (see e.g., Cole et al, 2009, who merge individual data on wages with firm/sector pollution data).…”

Section: The Data and The Modelmentioning

confidence: 99%

Linking emission trading to environmental innovation: Evidence from the Italian manufacturing industry

2015

View full text Add to dashboard Cite

“…Work‐induced stress, irregular hours, extreme temperatures, loud noises, strong smells, and flickering/bright lights are all potential triggers of migraine headaches (Adelman and Adelman, ; Kaniecki, ; Lambert and Zagami, ; Andress‐Rothrock et al, ). Because the labor market compensates workers for stress and disamenities such as irregular hours (McNabb, ; Kostiuk, ; Schumacher and Hirsch, ; Daniel and Sofer, ; French and Dunlap, ; Groot and Maassen van den Brink, ; Glomb et al, ; Cole et al, ; Bryson et al, ), the actual reduction in wages due to migraine headache could be larger than that suggested by the OLS estimates presented in Table (in other words, the bias could be positive)…”

Section: Estimation and Resultsmentioning

confidence: 97%

Migraine Headache and Labor Market Outcomes

Rees

Sabia

2014

Health Economics

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. While migraine headache can be physically debilitating, no study has attempted to estimate its effects on labor market outcomes. Using data drawn from the National Longitudinal Study of Adolescent Health, we estimate the effect of migraine headache on labor force participation, hours worked, and wages. We find that migraine headache is associated with a decrease in wages. However, there is little evidence that migraine headache leads to reductions in labor force participation or hours worked. We conclude that estimates of the cost of migraine headache to society should include its impact on wages.JEL Classification: I10, J30

show abstract

Dirty money: Is there a wage premium for working in a pollution intensive industry?

Cited by 33 publications

References 48 publications

Environmental regulation and wages in China

Environmental regulation and wages in China

Linking emission trading to environmental innovation: Evidence from the Italian manufacturing industry

Migraine Headache and Labor Market Outcomes

Contact Info

Product

Resources

About