Which theory supports the idea that coal mining should be paid more than office clerical work?
A) Signaling
B) Marginal productivity
C) Efficiency wage
D) Compensating differentials

Question

Quizplus · Accepted Answer

Compensating differentials theory argues that jobs that involve unpleasant or risky tasks tend to pay more in order to compensate for the negative aspects of the job. Coal mining, being a hazardous and physically demanding job, is considered to be compensated with higher pay, when compared to office clerical work, which is generally seen as low-risk and sedentary.

Which Theory Supports the Idea That Coal Mining Should Be