Guardado, José R.; Ziebarth, Nicolas R. - Institute for the Study of Labor (IZA) - 2013
In this paper, we develop a theoretical model of worker investment in safety. Standard theory assumes that injury risk … individual safety investments that reduce the risk of injury. This results in a negative association between individual injury … safety. In line with our model predictions, we find a significant positive compensating wage differential (CWD) for nonfatal …