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these characteristics in advance, or find this out after they have taken on the job is not of great importance. In both cases, the company that offers low wages and also poorer working conditions will eventually find it difficult to hire people, and finally the company must raise wage level to attract labor. It is quite obvious that the workers will eventually find out the various hazards such as through word of mouth method and by putting emphasis on this, evaluate the situation with some precision (ibid: 246).

 

3 - Worker Mobility: In this assumption, we assume that these workers have a lot of different jobs to choose. If there was no choice, and no competing positions, so it would be impossible to compare the risk lovers and risk averse. Because then it will be impossible to conclude why one choose a dangerous job rather than a non-dangerous jobs. Selection of non-hazardous jobs will thus cause an increase in payment in the dangerous jobs to attract workers. Among the many different job offers, the worker can choose a job among all the offers, but be alert and look for better opportunities. In other words, this will be an advantage for them to be highly mobile and change jobs as soon as they receive a better job that will maximize their utility (ibid: 246-247).

 

Hedonic Wage Theory:

 

There has been much empirical research to determine CWD without having reached agreement. Because everyone is not of the same notion that what is preferred working conditions and what is not. The method has been used in the past in order to determine and is the graphical presentation of CWD, which is called hedonic wage theory (ibid: 249) (Thaler and Rosen 1974).

 

Employee considerations:

 

When it comes to workers, assumption is so simply that they do not like getting injured or their lives put in danger because of the job they do. If the job will pay 100 Norwegian kroner per hour and injury percentages in the job is 1 percent, so workers will still have a certain utility of that job. But if in the coming year injury percentage increases from 1% to 2%, and if all other job characteristics are constant the workers' utility will minimize and because of this increase in injury and the employer must increase the hourly wage to improve employees’ utility in terms of increased damage percentage (ibid: 250). So this combination can be displayed in a graph to sketch indifference curve. In this contexts the slope of indifference curve pointing upwards because the injury is defined as something undesirable and if the injury increases so must salary increases simultaneously as well (ibid: 250)(figure 1).

 

Each of this possible indifference curves are for a specific utility. It is obvious that a higher salary as given a higher injury percentage levels, leading to higher utility. In other words the indifference curves in figure 1 at本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。