Question
In: Economics
An economy shows evidence of compensating differentials as a result of risks of injury in the...
An economy shows evidence of compensating differentials as a result of risks of injury in the labor market. Specifically, there are two sectors in the economy: a risky one (construction), and a less risky one (tourism). There are two types of workers: workers in group 1 are very risk averse, while those in group 2 are less risk averse.
a) Use a graph to describe the equilibrium in the labour market in this economy.
The government introduces a law that requires companies to invest in technology so that the risk for workers in any of the two sectors does not exceed the equilibrium risk in the tourism sector.
b) What would be the effect of this law on the well-being of group 2?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
An economy shows evidence of compensating differentials as a result of risks of injury in the...
An economy shows evidence of compensating differentials as a
result of risks of injury in the labor market. Specifically, there
are two sectors in the economy: a risky one (construction), and a
less risky one (tourism). There are two types of workers: workers
in group 1 are very risk averse, while those in group 2 are less
risk averse.
a) Use a graph to describe the equilibrium in the labour market
in this economy.
The government introduces a law that...
Consider the theory of compensating differentials presented in the supplemental lecture.
Consider the theory of compensating differentials presented in the supplemental lecture. Suppose that workers in the cod fishing industry are mobile and fully aware of the risks associated with their jobs. Moreover, these fishermen are paid significantly more than workers in other industries that have the same skill levels. Now suppose that OSHA imposes safety regulations designed to make fishing safer. According to the theory of compensating differentials: a. the wages of fishermen will fall and their utility will probably fall b. the wages...
Using the information in the book regarding compensating differentials and levels of education as a starting...
Using the information in the book regarding compensating
differentials and levels of education as a starting point; go
online or use your personal knowledge to discuss the wage of a
given profession. Why does the profession demand the wage it does?
What are the non-wage job characteristics? What kind of education
does a person need to do the job? Are there are other forces in
effect that drive the wage? How is the wage related to the revenue
the position...
Discuss the role for organised labour (trade unions) in the determination of compensating differentials?
Discuss the role for organised labour (trade unions) in the determination of compensating differentials?
What are compensating differentials and how might they explain a portion of the gender wage gap?
What are compensating differentials and how might they explain a
portion of the gender wage gap?
1- Define and give examples of compensating wage differentials. 2- What is the impact of a...
1- Define and give examples of
compensating wage differentials.
2- What is the impact of a minimum wage
law on unskilled labor? Give examples
The teacher salary schedule has no compensating differentials of any kind. In this labor market, what...
The teacher salary schedule has no compensating differentials of
any kind. In this labor market, what does that mean? What would it
be like, instead, to have compensating differentials? Describe how
the lack of compensating differentials affects the teacher supply.
Does the lack of compensating differentials have any other
repercussions in the market?
10. Based on compensating differentials who would you expect to earn more a lumberjack or a...
10. Based on compensating differentials who would you expect to
earn more a lumberjack or a store clerk?
11. How do unions control the supply of Labor?
12. What does it mean that a good is excludable?
Based on compensating differentials who would you expect to earn more a lumberjack or a store...
Based on compensating differentials who would you expect to earn
more a lumberjack or a store clerk?
For the most part, product differentiation is accomplished
through ___________.
How do unions control the supply of Labor?
Why do special interests so have so much power in our political
system?
Why are voters rationally ignorant?
I will be thankful if you can share your opinion and ideas for
these questions! I will like it for sure!
Thank you and stay safe!
11. Compensating wage differentials will reflect worker's evaluation of the value of nonwage job characteristics only...
11. Compensating wage differentials will reflect worker's
evaluation of the value of nonwage job characteristics only if:
A. workers have perfect information.
B. there is sufficient worker mobility.
C. workers maximize utility, not income.
D. All of the above are correct.
E. None of the above is correct.
1.In the context of intergenerational inequality, regression
toward the mean is captured by which of the following?
A. The tendency for the tax code to erode inequality by
targeting the mean tax...
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