Discounting I:  Probability, Expected Values, and Risk

Discussion Question

Some occupations are more risky than others.  But some occupations are paid more than others.  As a matter of public policy, how much should we regulate workplace safety?  How much are differences in wages explained by differences in risk?

Data Set

Injury rate per 100 workers and hourly wage rate, by industry, 1989-1998

Note: 1992-1998 cases include non-fatal incidents only

Source: Injury rates from the Bureau of Labor Statistics and the Occupational Safety and Health Administration (http://146.142.4.24/cgi-bin/dsrv?sh) and the wage rates from the Department of Labor and the Bureau of Labor Statistics (http://stats.bls.gov/webapps/legacy/cesbtab3.htm)

                 

Advanced Questions

Is it possible for workers to accurately assess the risk associated with different occupations?


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