Q1. Why has the compensating differentials between risky and safe jobs decreased recently?
Q2. If evidence now shows that the number of workers is risky jobs have declined recently, does this indicate why compensating differential got smaller?
Ans 1. I thought maybe this could be due to higher populations now so there is a higher labour supply and so people are settling for any job? Likewise with high unemployment rates, people are settling for less of a wage compensation for a risky job? People aren’t aware of the risk involved in jobs so they don’t demand a higher wage compensation? I’m not sure if this it the correct way to answer this question.
Ans 2. There may be less workers in risky jobs due to the lack of skilled labour for them? Better standards of living also deter people from getting a risky job? People now better understand the risk involved? I’m not sure how to expand on these economically.