real life court case involving workers compensation
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Governments typically provide disability insurance and unemployment insurance to workers. In contrast, governments typically mandate that firms provide workers compensation insurance to their workers but do not provide the coverage. Why the difference? Why don't governments provide workers compensation instead of mandating it?
Some workers in the economy are paid a flat salary and some are paid by commission. Which compensation scheme would require more monitoring by supervisors? In which case do firms have an incentive to pay more than the equilibrium level (as in the worker effort variant of efficiency-wage theory)? What factors do you think determine the type of compensation firms choose?
Suppose the US government requires firms to provide Workers Compensation Insurance Coverage for its employees. How does this mandate affect labor market outcomes (employment and wages) when workers
