• Journal of the Korean Regional Science Association
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• v.38 no.2
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• pp.3-20
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• 2022

The purpose of this study is to explore the heterogeneity of compensating wage differentials for outdoor workers, under the threat of climate change and heatwave, by region and by wage quantile. This study conducted Oaxaca-Blinder decomposition, multiple regression analysis by region, and unconditional quantile regression analysis using the Korean Working Conditions Survey, which provides individual-level information on the working environment and worker's characteristics. The implications derived from the results of the study are as follows: For most variables, the endowment effect and the price effect were greater for indoor workers, while experience and gender played a role in narrowing the wage gap; The compensating wage differentials for outdoor workers were confirmed to be 2.4% nationwide, depending on the region however, the compensating wage differentials varied from 5 times of national average to nothing statistically significant; The higher the wage quantile, the greater the compensating wage differentials for outdoor workers, and statistically significant monetary compensation was not identified for some low-level outdoor workers. This study is meaningful as an early study that revealed the heterogeneity of compensating wage differentials for outdoor workers and suggested further research on the topic.