Abstract
The goal of this study is to investigate the wage differential between groups of workers who are exposed to heat and those who are not. Workers in the heat-exposure risk group are defined as workers who work in conditions that cause them to spend more than 25% of their work hours at high temperatures. To analyze the wage differential, the Blinder-Oaxaca and Juhn-Murphy-Pierce methods were applied to Korea Working Condition Survey data. The results show that the no heat-exposure risk group received higher wages. In most cases, this can be interpreted as the endowment effect of human capital. As a price effect that lowers the endowment effect, the compensating differential for the heat-exposure risk group was found to be 1%. Moreover, education level, work experience, and employment status counteracted the compensating differentials for heat-exposure risks. A comparison of data sets from 2011 and 2014 shows that the increasing wage gap between the two groups was not caused by systematic social discrimination factors. This study suggests that wage differential factors can be modified for thermal environmental risks that will change working conditions as the impact of climate change increases.
Highlights
Heat-exposure, which is predicted to occur as a result of climate change, has recently been discussed as a substantial change that can cause occupational risks in working conditions
The International Labor Organization (ILO) has stated that climate change can lead to changes in working conditions and negatively impact vulnerable classes in the economy [2]
The degree of wage decrease in the heat-exposure risk group was greater than that of the no heat-exposure risk group, which led to even greater wage differentials
Summary
Heat-exposure, which is predicted to occur as a result of climate change, has recently been discussed as a substantial change that can cause occupational risks in working conditions.The Intergovernmental Panel on Climate Change [1] forecasts that it is highly likely that within this century, the change in heat-exposure due to climate change will exceed the capacity of the human body to thermo-regulate in some regions and will impact the health and productivity of workers.The International Labor Organization (ILO) has stated that climate change can lead to changes in working conditions and negatively impact vulnerable classes in the economy [2].Previous studies on occupational risks have mainly discussed compensating wage differentials.Compensating differentials are expected wages that take occupational risks into consideration. Heat-exposure, which is predicted to occur as a result of climate change, has recently been discussed as a substantial change that can cause occupational risks in working conditions. The International Labor Organization (ILO) has stated that climate change can lead to changes in working conditions and negatively impact vulnerable classes in the economy [2]. Previous studies on occupational risks have mainly discussed compensating wage differentials. Compensating differentials are expected wages that take occupational risks into consideration. A study in New York analyzing over 1600 jobs showed that expected wages increase by 1–4% per 10% increase in the variance of occupational risk [3]. Many studies that estimate the wage differentials for occupational risks operationalize the possibility of death and injury as the concept of risk, assess the level of compensating differentials in industrial sectors where occupational risks exist, and present wage–risk tradeoffs [4]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International journal of environmental research and public health
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
