Modern Labour Economics

Chapter 8Compensating Wage Differentials and

Labour Markets

Table 8.1 – Industry Incidence Rates by Selected Industry in

Canada, 1998

Figure 8.1 – A Family of Indifference Curves between

Wages and Risk of Injury

Figure 8.2 – Representative Indifference Curves for Two Workers Who Differ in Their Aversion to Risk of Injury

Figure 8.3 – A Family of Isoprofit Curves for an Employer

Figure 8.4 – The Zero-Profit Curves of Two Firms

Figure 8.5 – Matching Employers and Employees

Figure 8.6 – An Offer Curve

Figure 8.7 – The Effects of Government Regulation in a

Perfectly Functioning Labour Market

Figure 8.8 – A Worker Accepting Unknown Risk

Figure 8.9 – An Indifference Curve between Wages and Employee

Benefits

Figure 8.10 – An Isoprofit Curve Showing the Wage/Benefit Offers a Firm Might Be Willing to Make

to Its Employees

Figure 8.11 – Alternative Isoprofit Curves Showing the Wage/Benefit Offers a Firm Might Be Willing to

Make to Its Employees

Figure 8.12 – Market Determination of the Mix of

Wages and Benefits

Figure 8A.1 – Choice of Hours of Work

Figure 8A.2 – The Choice between H´ hours with Certainty and H´

Hours on Average