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economis

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There are 100 workers in the economy and all must choose to work either a risky or safe job. Worker 1's reservation price for accepting the risky job is $1, worker 2's reservation price is $2, and so on. There are only 10 risky jobs available. What is the equilibrium wage differential between safe and risky jobs.

  • economis - ,

    If the wage rate for non-risky is w, the wage rate for risky should be w+10.

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