AME Labour Economics Seminar, at the Swedish Institute for Social Research (SOFI).

Massimo Anelli from Bocconi University presents "Willingness to Pay for Workplace Amenities".

This is an in-person only event.

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Abstract

We present a new method to identify the value of workplace amenities using excess mass in the earnings distribution around budget discontinuities. The approach formalizes the idea that workers are less responsive to financial incentives when non-wage amenities are more valuable. Applying this method to the value of safe workplaces, we estimate a sizable willingness to pay for safer workplaces. Excess mass adjusts sharply when the death risk induced by Covid-19 outbreaks increases. The behavior implies that workers are willing to forgo about 1.3% of their income to lower fatality risks by one in a million.