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Int. J. Environ. Res. Public Health 2017, 14(7), 685; doi:10.3390/ijerph14070685

Wage Differentials between Heat-Exposure Risk and No Heat-Exposure Risk Groups

1
and
2,*
1
Korea Environment Institute, 370 Sicheong-daero, Sejong 30147, Korea
2
Department of Urban Planning and Engineering, Yonsei University, 50 Yonsei-ro, Seodaemun-gu, Seoul 03722, Korea
*
Author to whom correspondence should be addressed.
Received: 27 April 2017 / Revised: 14 June 2017 / Accepted: 23 June 2017 / Published: 24 June 2017
(This article belongs to the Special Issue Human Health, Risk Analysis and Environmental Hazards)
View Full-Text   |   Download PDF [357 KB, uploaded 26 June 2017]

Abstract

The goal of this study is to investigate the wage differential between groups of workers who are exposed to heat and those who are not. Workers in the heat-exposure risk group are defined as workers who work in conditions that cause them to spend more than 25% of their work hours at high temperatures. To analyze the wage differential, the Blinder-Oaxaca and Juhn-Murphy-Pierce methods were applied to Korea Working Condition Survey data. The results show that the no heat-exposure risk group received higher wages. In most cases, this can be interpreted as the endowment effect of human capital. As a price effect that lowers the endowment effect, the compensating differential for the heat-exposure risk group was found to be 1%. Moreover, education level, work experience, and employment status counteracted the compensating differentials for heat-exposure risks. A comparison of data sets from 2011 and 2014 shows that the increasing wage gap between the two groups was not caused by systematic social discrimination factors. This study suggests that wage differential factors can be modified for thermal environmental risks that will change working conditions as the impact of climate change increases. View Full-Text
Keywords: wage differential; heat-exposure risk; Blinder-Oaxaca method; Juhn-Murphy-Pierce method wage differential; heat-exposure risk; Blinder-Oaxaca method; Juhn-Murphy-Pierce method
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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Kim, D.; Lim, U. Wage Differentials between Heat-Exposure Risk and No Heat-Exposure Risk Groups. Int. J. Environ. Res. Public Health 2017, 14, 685.

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