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We develop a revealed preference approach to measure the value of workplace
amenities by analyzing how variation in non-wage job attributes affects excess
mass in the earnings distribution at budget discontinuities. The approach formalizes
the idea that workers respond less to monetary incentives when amenities
constitute a larger share of total compensation. Applying this method to workplace
safety during COVID-19 waves, we find that workers are willing to sacrifice
9% of their earnings to reduce weekly fatality risks by one in 100,000. The findings
suggest that conventional hedonic regressions substantially underestimate
the value of workplace safety.
