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Suppose half the jobs are safe, and the other half are risky. Workers understand this, but they don't know which jobs are safe and which
Suppose half the jobs are safe, and the other half are risky. Workers understand this, but they don't know which jobs are safe and which are risky. All jobs pay the same wage. Half the workers get lucky and find safe jobs; the unlucky other half run the risk of injury every day on the job. A new regulation eliminates injury risks on all jobs. In this context, which of the following statements is true? The wage falls, so workers who had been on risky jobs are hurt by the regulation The wage falls, so workers who had been on safe jobs are hurt by the regulation The wage doesn't change: workers on risky jobs benefit, and workers on safe jobs are not affected. Reducing risks of injury improves productivity, and wages increase
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