Which of the following is an example of a compensating differential?
A) A plastic surgeon must train for five more years than an internist and on average plastic surgeons earn 40% more per year than internists.
B) A bank hires both men and women who have just graduated from college. The women are assigned positions as bank tellers, and the men are assigned to the management training program.
C) It takes the same amount and type of training to be either a prison guard or a parole officer. Prison guards earn about 15% more than parole officers with the same amount of experience. About 3% of prison guards, but only 1% of parole officers, are injured on the job each year.
D) Bill was injured on the job and as a result of his injuries he can no longer work. He now qualifies for $1,000 a month in disability payments.
Correct Answer:
Verified
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