Jasmine,a woman,is more educated and better trained than Christian,a male.Despite these differences in education and training,Christian still earns more because he is a coal miner,whereas Jasmine is a secretary.Which model best explains the fact that Christian earns more than Jasmine?

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Quizplus · Accepted Answer

The concept of compensating differentials suggests that workers are paid more for jobs with undesirable or risky characteristics. In this scenario, Christian's job as a coal miner is more hazardous than Jasmine's job as a secretary, and he is likely compensated accordingly with a higher wage. This model explains why someone with less education and training can still earn more than someone with more education and training in certain industries.

Jasmine,a Woman,is More Educated and Better Trained Than Christian,a Male