A potential implication of OSHA regulation is that
A) the most risk-averse workers begin working the riskiest jobs.
B) the hedonic wage function may no longer exists at the safest levels.
C) the hedonic wage function may no longer exists at the riskiest levels.
D) average wages increase.
E) for the same amount of output produced, total production costs will be less.

Question

Quizplus · Accepted Answer

The hedonic wage function may no longer exists at the riskiest levels because OSHA regulations may make these jobs safer, reducing the risk premium that workers demand.

A Potential Implication of OSHA Regulation Is That