When we state that compensating wage differentials exist for comparable workers,we do NOT assume that
A) workers have several jobs to choose from.
B) workers maximize utility.
C) workers maximize income.
D) workers accurately assess the non-pecuniary benefits of jobs.

Question

Quizplus · Accepted Answer

Compensating wage differentials refer to the differences in wage rates intended to offset the desirability or undesirability of a job's attributes, not just to maximize income. Workers consider various factors, including non-pecuniary benefits and job characteristics, in their employment choices, aiming to maximize overall utility rather than just income.

When We State That Compensating Wage Differentials Exist for Comparable