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 exist at the safest levels.
C)the hedonic wage function may no longer exist 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 suggests that workers demand higher wages as compensation for riskier jobs. If OSHA regulations make the riskiest jobs safer, then the compensation demanded by workers may not be as high, meaning that the hedonic wage function may no longer exist for these jobs. This could have implications for the labor market and wages.

A Potential Implication of OSHA Regulation Is That