LABRST 3A03 Lecture Notes - Lecture 5: Hyperbolic Discounting, Wishful Thinking, Indifference Curve
16 Nov 2017
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The optimal safety standard would be so. Empirical evidence on compensating wages: obtaining empirical evidence is difficult, errors in variable problems, omitted variable bias, sample selection bias, family friendly workplace practices, policy implications. An isoprofit schedule is defined as: the various combo of wages and safety that the firm can provide and maintain the same level of profits. The employers offer curve shows which of the following? (the red line): the maximum compensating wages that will be offered in the labour market for various levels of safety. The more risk-averse the individual the more he requires a larger compensating wage differential in return for accepting a riskier work environment.
