A compensating differential is mainly a cause of a difference in wages because:

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A compensating differential occurs when workers are paid differently due to differences in working conditions, such as safety hazards or uncomfortable environments. This is because workers may require additional compensation in order to work in less desirable conditions. The other options, such as differences in human capital or productivity, may also lead to wage differences but are not the main cause of compensating differentials. The statement "all workers should be paid the same wage rate" is not true as wages will naturally vary due to differences in job requirements and qualifications.

A Compensating Differential Is Mainly a Cause of a Difference