Compensating Differentials for the Risk of Reinjury – Lessons from Professional Boxing

Peter Anderson

doi:10.1177/15270025221120592

Compensating Differentials for the Risk of Reinjury – Lessons from Professional Boxing

Peter Anderson

Research output: Journal Publication › Article › peer-review

2 Citations (Scopus)

Abstract

A neglected area in the compensating-differential literature is how wages compensate workers for the risk of reinjury, specifically the risk of a subsequent mild Traumatic Brain Injury (mTBI). Using a new, unbalanced panel of 1,211 professional boxers, this paper finds that boxers' purses price for the risk of knockout reinjury risk while those that have never lost by knockout earn economically and statistically insignificant knockout-risk premiums. These results are consistent across three measures of previous knockout loss and three robustness tests, implying that current values of a statistical injury (VSI) underestimate previously injured workers' willingness to pay for safety.

Original language	English
Journal	Journal of Sports Economics
DOIs	https://doi.org/10.1177/15270025221120592
Publication status	Accepted/In press - 2022
Externally published	Yes

Keywords

J01
N32
Z22
compensating differentials
mild traumatic brain injury
professional boxing labor economics
reinjury risk

ASJC Scopus subject areas

Economics, Econometrics and Finance (miscellaneous)

Access to Document

10.1177/15270025221120592

Cite this

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abstract = "A neglected area in the compensating-differential literature is how wages compensate workers for the risk of reinjury, specifically the risk of a subsequent mild Traumatic Brain Injury (mTBI). Using a new, unbalanced panel of 1,211 professional boxers, this paper finds that boxers' purses price for the risk of knockout reinjury risk while those that have never lost by knockout earn economically and statistically insignificant knockout-risk premiums. These results are consistent across three measures of previous knockout loss and three robustness tests, implying that current values of a statistical injury (VSI) underestimate previously injured workers' willingness to pay for safety.",

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N2 - A neglected area in the compensating-differential literature is how wages compensate workers for the risk of reinjury, specifically the risk of a subsequent mild Traumatic Brain Injury (mTBI). Using a new, unbalanced panel of 1,211 professional boxers, this paper finds that boxers' purses price for the risk of knockout reinjury risk while those that have never lost by knockout earn economically and statistically insignificant knockout-risk premiums. These results are consistent across three measures of previous knockout loss and three robustness tests, implying that current values of a statistical injury (VSI) underestimate previously injured workers' willingness to pay for safety.

AB - A neglected area in the compensating-differential literature is how wages compensate workers for the risk of reinjury, specifically the risk of a subsequent mild Traumatic Brain Injury (mTBI). Using a new, unbalanced panel of 1,211 professional boxers, this paper finds that boxers' purses price for the risk of knockout reinjury risk while those that have never lost by knockout earn economically and statistically insignificant knockout-risk premiums. These results are consistent across three measures of previous knockout loss and three robustness tests, implying that current values of a statistical injury (VSI) underestimate previously injured workers' willingness to pay for safety.

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ER -

Compensating Differentials for the Risk of Reinjury – Lessons from Professional Boxing

Abstract

Keywords

ASJC Scopus subject areas

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