Occupational Injuries and Wage Differentials in Turkey

Abstract

We test the compensating wage differentials hypothesis for the manufacturing industry in Turkey using occupational injury data from the Ministry of Labor and Social Security and wage data from Household Labor Force Surveys, for the 2013-2017 period. First, we estimate a standard hedonic wage equation for the fatal and non-fatal injury risk. In conformity with the standard CWD hypothesis we find a positive relation between occupational risks and wage however after controlling for industry effects, the relation becomes insignificant. For an alternative estimation, we use a two-step procedure. Besides an insignificant and negative effect of risk, poor working conditions are associated with lower wages for the male population, which suggest a segmented labor market.