Work accidents, work safety and compensating wage differantials: Evidence from turkey

Compensating wage differential analyzes the relationship between the wage and the unpleasantness, risk, or other undesirable attributes of a particular job. The broad purpose of this study is to examine compensating wage theory for Turkey case. With that aim in mind, we first discuss work accidents and work safety taking into account their historical, legal and statistical bacground. Although work accidents rates have declined during te last 40 years, Turkey still has substaintial rate of work accidents. There is no additional amount of wage for the risk of injury because of high unemployment rate in Turkey. After we discuss work accidents, we estimate an industrial wage equation using NACE Rev 2, 76 two-digit industry for the period 2009-2015. The results from the estimation suggest that there is a small positive effect of work accidents on the reaal wage in Turkey. The most important variable on the real wages is labor productivity, as expected. While firm size and female ratio on the industry have positive effect on the real wages, economic crisis have a negative effect.