A waiter in an all-night restaurant in a dangerous location receiving a higher wage rate is receiving:
A) a part of reality captured by the competitive model.
B) returns to general training.
C) returns to specific human capital.
D) compensating wage differential.

Question

Quizplus · Accepted Answer

The waiter in the dangerous location is receiving a compensating wage differential, which is an increase in pay to compensate for the risks and discomfort associated with the job. This is not captured by the competitive model or returns to general/specific human capital.

A Waiter in an All-Night Restaurant in a Dangerous Location