Chapter Learning Objectives

  • Understand the general trends in U.S. workplace fatality, injury, and illness rates and the particular fact that they all witnessed a stunning decline over the last 20 years.
  • Understand the principles underlying the two basic building blocks of the hedonic framework: indifference and iso-profit curves.
  • Appreciate why the workplace accident rate is not simply given but is determined endogenously.
  • Explain the principles leading to positive assortative matching.
  • Understand the general principles of cost-benefit analysis and understand the meaning of the statistical value of a life.
  • Understand how the hedonic framework is applied to study the effects of policies intended to improve workplace safety.