ECON 120W Lecture Notes - Lecture 19: Occupational Safety And Health, Human Capital, Marginal Product
20 Jun 2019
School
Department
Course
Professor
Document Summary
Chapter 19 earnings and discrimination: characteristics of workers and jobs affect labour supply, labour, demand, and equilibrium wages. The higher wage compensates them for having to work at night and sleep during the day, a lifestyle that most people find undesirable: work safety is a (positive) compensating differential lower wage but for more work safety. Human capital: capital refers to the economy"s stock of equipment and structures, the essence of capital is that it is a factor of production that itself has been produced (ex. Increased human capital increase marginal product: the difference in wages between highly educated and less educated workers may be considered a compensating differential for the cost of becoming educated. Salespeople are often paid as a percentage of the sales they make. Alternative view of education: signaling: the human-capital theory: the human capital view of education is schooling raises workers wages because it makes them more productive.
