Self-selection:
A)increases the number of qualified applicants for a job.
B)increases the turnover costs of a firm.
C)increases the compensating wage differential.
D)reduces the compensating wage differential.

Question

Quizplus · Accepted Answer

Self-selection can reduce the compensating wage differential because it allows individuals to choose positions that best match their preferences and tolerances for certain job characteristics, thus potentially decreasing the need for higher wages to compensate for less desirable job aspects.

Self-Selection