Abstract
Recent medical studies have demonstrated a strong relationship between mental stress and cardiac events such as myocardial infarction and stroke. In the workplace, stress once accounted for less than 5% of all occupational disease claims, but it now accounts for over 15%. Although research on the effects of mental stress is increasing, few studies offer an economic perspective. In this paper, we examine the effects of job stress on weekly wages and explore the possibility that stress commands a compensating wage differential. Our findings suggest that, ceteris paribus, a wage differential does exist between workers experiencing mental stress and their 'non-stressed' cohorts. After controlling for other demographic and occupational factors, we found a statistically significant wage premium ranging from 3 to 10% attributable to mental stress. In addition, the magnitude of the differential varies by gender.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 1067-1075 |
| Number of pages | 9 |
| Journal | Applied Economics |
| Volume | 30 |
| Issue number | 8 |
| State | Published - 1998 |
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ASJC Scopus subject areas
- Economics and Econometrics
Cite this
Compensating -wage differentials for job stress. / French, Michael; Dunlap, Laura J.
In: Applied Economics, Vol. 30, No. 8, 1998, p. 1067-1075.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Compensating -wage differentials for job stress
AU - French, Michael
AU - Dunlap, Laura J.
PY - 1998
Y1 - 1998
N2 - Recent medical studies have demonstrated a strong relationship between mental stress and cardiac events such as myocardial infarction and stroke. In the workplace, stress once accounted for less than 5% of all occupational disease claims, but it now accounts for over 15%. Although research on the effects of mental stress is increasing, few studies offer an economic perspective. In this paper, we examine the effects of job stress on weekly wages and explore the possibility that stress commands a compensating wage differential. Our findings suggest that, ceteris paribus, a wage differential does exist between workers experiencing mental stress and their 'non-stressed' cohorts. After controlling for other demographic and occupational factors, we found a statistically significant wage premium ranging from 3 to 10% attributable to mental stress. In addition, the magnitude of the differential varies by gender.
AB - Recent medical studies have demonstrated a strong relationship between mental stress and cardiac events such as myocardial infarction and stroke. In the workplace, stress once accounted for less than 5% of all occupational disease claims, but it now accounts for over 15%. Although research on the effects of mental stress is increasing, few studies offer an economic perspective. In this paper, we examine the effects of job stress on weekly wages and explore the possibility that stress commands a compensating wage differential. Our findings suggest that, ceteris paribus, a wage differential does exist between workers experiencing mental stress and their 'non-stressed' cohorts. After controlling for other demographic and occupational factors, we found a statistically significant wage premium ranging from 3 to 10% attributable to mental stress. In addition, the magnitude of the differential varies by gender.
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UR - http://www.scopus.com/inward/citedby.url?scp=0001188185&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:0001188185
VL - 30
SP - 1067
EP - 1075
JO - Applied Economics
JF - Applied Economics
SN - 0003-6846
IS - 8
ER -