Under normal circumstances, the equilibrium compensation wage differential is the wage differential that exactly attracts
A)the average worker into a regular job.
B)the marginal worker into a risky job.
C)the average worker into a less risky job.
D)the marginal worker into the labor market.
E)the average high-skilled worker into a low-skill job.

Question

Quizplus · Accepted Answer

The equilibrium compensation wage differential is the additional wage required to attract the marginal worker to accept a riskier job, compensating them for the increased risk compared to a safer job.

Under Normal Circumstances, the Equilibrium Compensation Wage Differential Is the Wage