Long-term Illness and Wages: The Impact of the Risk of Occupationally Related Long-term Illness on Earnings

Long-term illness (LTI) is a more prevalent workplace risk than fatal accidents but there is virtually no evidence,for compensating differentials for a broad measure of LTI. In 1990 almost 3.4 percent of the U.K. adult population suffieredfrom a LTI caused solely, by their working conditions. This paper provides the first estimates of compensating differentials for a broad measure of work-related LTI. Using data on self-reported illnesses we find Significant CDs for male manual workers but nonefbr male nonmanual workers. These results are robust to the addition of variablesfor the risk of accidental at-work deaths.