Holly and Emily both have a BS in nursing from the same college. Both have been nurses for eight years. Holly works from 11 P.M. until 7 A.M., and Emily works from 7 A.M. until 3 P.M. Holly's salary is $1,000 per month higher than is Emily's salary. This is an example of a wage disparity due to:
A) compensating differentials.
B) differences in ability and talent.
C) differing levels of human capital.
D) occupational choice.

Question

Quizplus · Accepted Answer

The wage disparity is due to compensating differentials, which refers to the difference in wages offered to compensate for the desirability or undesirability of a job, such as the less desirable hours Holly works compared to Emily.

Holly and Emily Both Have a BS in Nursing from the Same