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The cost of offering safe versus risky jobs in the highway construction industry vary across firms. In the end, we would expect the market equilibrium
The cost of offering safe versus risky jobs in the highway construction industry vary across firms. In the end, we would expect the market equilibrium to
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have firms randomly choose their level of safety.
have firms that face a high cost of offering safe jobs to pay the lowest wages.
match workers who dislike risk to firms that find it cheapest to offer safe jobs.
randomly match workers to jobs.
match workers who dislike risk to the highestpaying jobs.
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