11/03/2008
An innovative study on wages and working conditions carried out by the Centre for Applied Mathematics and Economics at the University of Lisbon evaluated the monetary compensation for those working in sectors with dangerous, risky and painful working conditions. The study revealed that a positive wage differential exists for workers who show an increased exposure to work-related risks.

The study’s authors underline the danger associated with the fact that when the costs of these compensatory wage differentials are lower than the investment in more and better working conditions, companies tend to opt for the former case. Moreover, the authors conclude that an incentive exists to maintain harmful working conditions, particularly when workers who receive a ‘wage compensation’ do not complain about their working conditions.

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Sources: The Dublin Foundation, EUROGIP