Effects of Air Pollution and Other Environmental Variables on Offered Wages (1980)
Paper Number: EE-0026
Document Date: 11/10/1980
Author(s): Gerking, Shelby
Subject Area(s):
Economic Analysis, Air Quality, Revealed Preference, Hedonic Pricing, Wage Differential
Keywords: Economic Analysis, Air Quality, Revealed Preference, Hedonic Pricing, Wage Differential
Abstract:
The purpose of this report is to construct some exploratory estimates of the effect of changes in air pollution levels on offered wage rates. Repercussions on the work time choice are not explicitly considered. Specifically, hedonic equations are estimated that allow for an individual's offered wage rate to be determined by his own labor supply characteristics together with measures of amenity levels in the community in which he lives. In this type of analysis, supply characteristics such as education, work experience, and health status are frequently used exclusively to explain the variation in the offered wage.
This paper is part of the Environmental Economics Research Inventory.