In order to get rid of ability bias when estimating the compensating differential associated with various jobs, one should look at
A)wages for particular workers who never change jobs over time.
B)wages for particular workers who change jobs over time.
C)wages for particular industries over time.
D)wages for particular industries over various jobs within the industry.
E)the average wages paid by different firms within the same industry.

Question

Quizplus · Accepted Answer

Looking at wages for particular workers who change jobs over time allows for a comparison of the compensating differential between different jobs for the same individual. This controls for ability bias because the individual's skills and abilities remain constant while only the job changes.

In Order to Get Rid of Ability Bias When Estimating