ILRLE 2400 Lecture 14: 10/18/16
18 Oct 2016
School
Department
Course
Professor
Document Summary
People have information regarding the job characteristics and a choice of what work to do in order for wage differentials to exist. Dangerous jobs are paid more than safe jobs in the same realm of work (eg. unskilled labor) Study found that workers would accept a pay raise of /year for a 1/10,000 risk increase (death or injury) If job loses 1/10,000 risk, can pay less. Firms offering high-risk jobs have some incentive to offer lower-risk jobs due to the wage differentials. Have to examine if it is cheaper to reduce the risk or pay the differential. Workers changing jobs brings more risk; when unemployment goes down, injury rates rise. When the government mandates increased safety measures, the workers end up covering the cost in decreased wages (which may not be desireable)
