Abstract
In this paper, we estimate wage compensation of workers facing different risks adversely affecting their health and well-being based on individual evaluations of work environment by using the ad-hoc module of 2013 Household Labor Survey. Our results reveal that among various risk factors, only general risk of injury is compensated by a significant and positive premium. Informal workers and female wage earners do not receive additional payment working in risky environments. Allowing risk compensation to vary across wage dispersion, we find that positive compensations follow an inverse-u shape. We argue that in terms of unpleasant job attributes, the labor market in Turkey can be identified with labor segmentation rather compensating wage differentials.
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