A waiter in an all-night restaurant at a dangerous location is likely to receive:
A)a competitive market wage.
B)a wage that equals returns to general training.
C)a wage that equals returns to specific human capital.
D)a wage with a compensating wage differential.

Question

Quizplus · Accepted Answer

A waiter in an all-night restaurant at a dangerous location is likely to receive a wage with a compensating wage differential, as their job carries a high level of risk. The compensating wage differential is an increase in pay intended to compensate workers for the additional risk or unpleasantness associated with a particular job or work environment.

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