Employment baseline distribution

Employment. The final WC effect we consider concerns the distribution of workers across safety levels. Figure 4.6 shows the movement of workers across the risk spectrum caused by increasing the rate of income replacement from 0.5 to 1.5 with no enforcement and with maximum enforcement of OSH A safety and health standards. WC benefits lead workers to relocate away from relatively safe toward relatively hazardous workplaces. An increase in the rate of income replacement from its baseline 0.5 level to 1.5 attracts an additional 87,700 workers, almost 1 percent of the workforce in our model, to high-risk jobs (0.002 < tt < 7i ) when OSHA safety and health standards are totally absent. However, more generous WC benefits also... 

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