Question: Consider the example on compensating differentials, where workers have a utility function given byu(c, a) =ca. Suppose that different workers have different values ofand suppose

Consider the example on compensating differentials, where workers have a utility function given byu(c, a) =ca. Suppose that different workers have different values ofand suppose that the distribution ofacross workers is such that=+, withN(0,^2).

Write down an expression for the equilibrium share of clean jobs in the labor market. Explain.

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