Asked by
Cossi Adjovi
on Oct 26, 2024Verified
Which example illustrates wage disparity due to compensating differentials?
A) The median earnings of White men are more than are the median earnings of African-Americans.
B) People with graduate degrees usually have higher earnings than do people who did not graduate from high school.
C) Nick Saban,the football coach at the University of Alabama,earns more than does an economics professor.
D) Crab fishermen on the Bering Sea earn more than do clerks who sell goldfish at a pet store.
Wage Disparity
Wage disparity refers to the differences in wages earned by different groups of people, often influenced by factors such as gender, ethnicity, education, and job type.
Compensating Differentials
Wage differences across jobs that reflect the desirability of the job attributes, compensating workers for non-monetary aspects of different jobs like risk or undesirable hours.
Median Earnings
The middle value of earnings in a group, indicating that half of the group earns more and half earns less than this amount.
- Understand compensating differentials and their impact on wages.
Verified Answer
KM
Learning Objectives
- Understand compensating differentials and their impact on wages.