Unions and Risk: Their Impact on the Level of Compensation for Fatal Risk

Abstract

This paper distinguishes between the premia for fatal risk in jobs covered by union-negotiated terms and conditions and the premia in uncovered jobs. It employs a model which allows for the endogeneity of both covered status and fatal job risk. Values of a life in both the covered and uncovered sectors are computed. Copyright 1996 by The London School of Economics and Political Science.