Which of the following is an example of a compensating wage differential?
A) Nurse anaesthetists are paid less than anaesthetists with medical degrees.
B) Workers in a dynamite mine receive higher wages than if they worked in other jobs that require the same level of skills.
C) In the market for lawyers, top graduates from the top programs earn starting salaries that are significantly higher than the starting salaries earned by lower-ranked graduates from the lower-ranked programs.
D) Popular movie stars like George Clooney command much higher salaries than other talented but lesser-known actors.

Question

Quizplus · Accepted Answer

Compensating wage differentials occur when workers receive higher pay to compensate for risks or unpleasantness associated with their job. In this case, workers in a dynamite mine are receiving higher wages to compensate for the dangerous working conditions. A, C, and D do not involve compensating wage differentials.

Which of the Following Is an Example of a Compensating