Suppose that firms that had high rates of injury had to pay more for workers' compensation than did firms with lower rates of injury. This change would:

Question

Quizplus · Accepted Answer

By increasing the cost of workers' compensation for firms with higher injury rates, this policy would create a financial incentive for those firms to reduce the risk of injury in the workplace. This, in turn, may lead firms to invest in safety equipment and training, ultimately making the workplace safer for employees.

Suppose That Firms That Had High Rates of Injury Had