1. Chapter 8 Compensating Wage Differentials and Labor Markets

2. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 8-2 FIGURE 8.1 A Family of Indifference Curves between Wages and Risk of Injury

3. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 8-3 FIGURE 8.2 Representative Indifference Curves for Two Workers Who Differ in Their Aversion to Risk of Injury

4. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 8-4 FIGURE 8.3 A Family of Isoprofit Curves for an Employer

5. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 8-5 FIGURE 8.4 The Zero-Profit Curves of Two Firms

6. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 8-6 FIGURE 8.5 Matching Employers and Employees

7. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 8-7 FIGURE 8.6 An Offer Curve

8. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 8-8 FIGURE 8.7 The Effects of Government Regulation in a Perfectly Functioning Labor Market

9. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 8-9 FIGURE 8.8 A Worker Accepting Unknown Risk

10. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 8-10 FIGURE 8.9 An Indifference Curve between Wages and Employee Benefits

11. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 8-11 FIGURE 8.10 An Isoprofit Curve Showing the Wage/Benefit Offers a Firm Might Be Willing to Make to Its Employees: A Unitary Trade-Off

12. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 8-12 FIGURE 8.11 Alternative Isoprofit Curves Showing the Wage/Benefit Offers a Firm Might Be Willing to Make to Its Employees: Nonunitary Trade-Offs

13. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 8-13 FIGURE 8.12 Market Determination of the Mix of Wages and Benefits

14. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 8-14 FIGURE 8A.1 Choice of Hours of Work

15. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 8-15 FIGURE 8A.2 The Choice between H' Hours with Certainty and H' Hours on Average