Here is another way to think about sexual harassment and the model. What the theory and the empirical results are saying is that people exposed to a higher risk of sexual harassment are paid more, just as people exposed to a higher risk of death are paid more. In the case of risk, however, the firm’s owners (shareholders) are paying higher wages but also getting the benefits of risky work. But in the case of sexual harassment the shareholders are paying higher wages but not getting the benefits of sexual harassment. In other words, from the firm’s point of view sexual harassment is a bit like employee theft – with the stealing being done by the harassers…Thus, shareholders may benefit if the government can reduce sexual harassment at low cost, precisely because they would then be able to pay lower wages without losing productive workers.
“Reading and thinking. The beauty of doing it, is that if you’re good at it, you don’t have to do much else" Charlie Munger. "La cantidad de energía necesaria para refutar una gilipollez es un orden de magnitud mayor que para producirla" Paul Kedrosky «Nulla dies sine linea» Antonio Guarino. "Reading won't be obsolete till writing is, and writing won't be obsolete till thinking is" Paul Graham.
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