Which of the following is an example of wage disparity due to compensating differentials?
A) The median earnings of White men are more than the median earnings of African Americans.
B) People with graduate degrees usually have higher earnings than people who did not graduate from high school.
C) Nick Saban, the football coach at the University of Alabama, earns more than an economics professor.
D) Crab fishermen on the Bering Sea earn more than clerks who sell goldfish at a pet store.

Question

Quizplus · Accepted Answer

Compensating differentials refer to differences in wages that arise to compensate workers for non-monetary aspects of different jobs, such as risk or unpleasant conditions. Crab fishermen earn more due to the dangerous and harsh conditions of their work compared to clerks in a pet store.

Which of the Following Is an Example of Wage Disparity