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MISPERCEIVED JOB HAZARDS AND WELFARE

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UNSPECIFIED (1995) MISPERCEIVED JOB HAZARDS AND WELFARE. JOURNAL OF PUBLIC ECONOMICS, 56 (1). pp. 97-123.

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Abstract

Bayesian workers produce 'chemicals' hazardously in one sector of a two-sector economy having one safe sector. Adopting an expected ex post welfare perspective, we show workers' misperceptions of hazards entail a classic externality. We characterise chemicals' competitive, monopoly and socially efficient outputs, assuming workers receive identical wage-accident compensation contracts under each, the value of information which induces workers to place greater stress on firms' safety records or sharpens their priors, and extend the standard monopoly welfare loss index for sufficient conditions for monopoly to be preferred to competition in chemicals and for size-ranking monopoly and efficient chemical outputs.

Item Type: Journal Article
Subjects: H Social Sciences > HC Economic History and Conditions
Journal or Publication Title: JOURNAL OF PUBLIC ECONOMICS
Publisher: ELSEVIER SCIENCE SA LAUSANNE
ISSN: 0047-2727
Official Date: January 1995
Dates:
DateEvent
January 1995UNSPECIFIED
Volume: 56
Number: 1
Number of Pages: 27
Page Range: pp. 97-123
Publication Status: Published

Data sourced from Thomson Reuters' Web of Knowledge

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