Occupational safety, wages and labor turnover in the mining industry
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Date
2022
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Abstract
The objective of this paper is to identify the channels that allow us to numerically replicate the following scenarios: the first, in which firms compensate through wages an increase in the level of risk associated with employment, better known as compensating wage differentials; the second, in which firms do not compensate for risk, and there are jobs with low risk and high wages, and jobs with high risk and low wages. For this we use a labor turnover model with search frictions based on Burdett and Mortensen (1998), which also includes a job risk variable that depends on the technology adopted by the firm. This novel extension influences both the firm's decisions, since it faces a trade-off between wage and safety technology to be adopted, and the workers' decisions, since they must not only make a wage decision but also a safety decision. Given this framework, we obtain the equilibrium distributions of wages, technology and number of employees per firm for different numerical cases, based on which we generate simulations that allow us to replicate the above scenarios.
Description
Tesis (Magíster en Economía)--Pontificia Universidad Católica de Chile, 2022