Compensating Differentials

Firms have an incentive to increase job safety, because then they can lower wages. In this video, we explore this surprising claim in much greater depth. Bear in mind that wages adjust until jobs requiring a similar level of skill have similar compensation practices. Why do riskier jobs often pay more? Why has job safety increased over the years? How does a firm’s profit motive play a role?

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[momergil]

I'ld like to understand this much negative reviews. Could they be the product of unions and government regulation fans? ^^

[scrubby_god]

Safer jobs for lower pay? The kids working in meat plants and factories beg to differ. They're getting shafted on both ends smh

[eliakruger]

Good job on not mentioning that this is Friedman's thinking, it makes it look like fact, an not just a theory...