You are an economist who wants to know how risk of


Question: You are an economist who wants to know how risk of on-the-job injury affects peoples' wages. Studying construction workers (who have a substantial risk exposure), you discover that they earn very little more than otherwise similar people with equivalent skills and training in low-risk jobs. You conclude that people only require a small wage premium to induce them into risky lines of work. How does selection bias make your conclusion doubtful?

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