Which example illustrates wage disparity due to compensating differentials?
A)The median earnings of White men are more than are the median earnings of African-Americans.
B)People with graduate degrees usually have higher earnings than do people who did not graduate from high school.
C)Nick Saban,the football coach at the University of Alabama,earns more than does an economics professor.
D)Crab fishermen on the Bering Sea earn more than do clerks who sell goldfish at a pet store.

Question

Quizplus · Accepted Answer

Compensating differentials refer to the differences in wages that exist due to differences in the working conditions or attributes of different jobs. In this case, the crab fishermen on the Bering Sea may be earning more due to the hazardous and physically demanding nature of their job compared to the clerks who sell goldfish at a pet store.

Which Example Illustrates Wage Disparity Due to Compensating Differentials