LT Topic 3: Compensating Wage Differentials

Question 1

Compensating differentials

Answer 1

Question 2

Binary job (dis)amenities model

Answer 2

Question 3

Binary job (dis)amenities model - workers

Answer 3

Question 4

Binary job (dis)amenities model - firms

Answer 4

Question 5

Binary job (dis)amenities model - equilibrium

Answer 5

Question 6

Binary job (dis)amenities model - equilibrium

Answer 6

Question 7

The Hedonic Wage Function

Answer 7

Question 8

The Hedonic Wage Function

Answer 8

Question 9

Indifference curves

Answer 9

Question 10

Difference in risk aversion

Answer 10

Question 11

The Hedonic Wage Function - Isoprofit curves

Explain the shape of isoprofit curves

Answer 11

Question 12

Differences in technology

Answer 12

Question 13

Wage offer curve

Answer 13

Question 14

Optimal matching

Answer 14

Question 15

Optimal sorting

Answer 15

Question 16

Optimal Sorting, the Hedonic Wage Function

Answer 16

Question 17

Estimating Compensating Differentials

Answer 17

Question 18

Ability bias

Answer 18

Question 19

Ability Bias

Answer 19

Question 20

Ability Bias

Answer 20

Question 21

Estimating Compensating Differentials - Empirical evidence

Answer 21

Question 22

Estimating Compensating Differentials - Empirical evidence

Answer 22

Question 23

Estimating Compensating Differentials - Empirical result

Answer 23

Question 24

Policy application: Healthy and safety regulations

Answer 24

Question 25

Policy application: Healthy and safety regulations

Answer 25

Question 26

Policy application: Healthy and safety regulations Now suppose that workers incorrectly believe that their probability of injury

Answer 26

Question 27

Policy Application: Health and Safety Regulations Government mandates

Answer 27

Question 28

Compensating Differentials - Summary

Answer 28