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Handbook of the Economics of Risk and Uncertainty
book

Handbook of the Economics of Risk and Uncertainty

by Mark Machina, W. Kip Viscusi
November 2013
Beginner content levelBeginner
896 pages
35h 10m
English
North Holland
Content preview from Handbook of the Economics of Risk and Uncertainty
The Value of Individual and Societal Risks to Life and Health
399
If workers in groups c and d were on the same offer curve, w(0, c) and w(0, d ) would be
equal so that inequality (7.4) reduces to
With identical offer curves,
Substituting this value of w(p
1
, d) based on equation (7.6) for w(p
1
, c) in inequality (7.5)
yields
Since p
1
> p
2
, this result contradicts the property of wage offer curves as upward
sloping.
This model of segmented hedonic labor markets is applicable to a wide variety of
situations, which are discussed in Section 7.11. As in the case of the basic hedonic wage
model, differences on both sides of the market will affect the ultimate ...
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Publisher Resources

ISBN: 9780444536853