This is a problem that is supposed to make you think a bit. I cant figure it out though. Thanks for the help
A worker who was injured on the job could collect damages only by suing her employer. In the 20th Century such lawsuits was extremely difficult, if not imposable, to win. The employer had to show that the injury was due to the employer's negligence, that the worker did not know the work was hazardous, and that the worker's own negligence had not contributed to the accident
Starting in 1910 a study by Price Fishback and Shawn Kantor of the University of Arizona shows that the passage of worker's compensation laws, wages received by workers in the coal and lumber industries fell. Briefly explain why passage of workers' compensation laws would lead to a fall in wages in some industries
SDD
Because it raises the "effective wage" that employers have to pay. Higher wages mean fewer people employed -- all other things equal. Same thing with other payroll taxes. They reduce employment.
Orignal From: Tips: Workers' compensation laws would lead to a fall in wages in some industries?
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