Regarding empirical research on compensating wage differential, which of the following is NOT correct?
A) Compensating wage premiums are larger in nonunion than in union environments.
B) Empirical evidences support that individuals would have to be compensated for bearing the risk of unemployment.
C) Empirical evidence shows that overall compensation inequality increased even more than wage inequality.
D) Compensating wage premiums are paid for work hazards and they increase with the seriousness of the risk.
E) People in poorer countries are willing (more realistically, constrained) to take on more risk in return for smaller wage increases than are people in richer countries.

Question

Quizplus · Accepted Answer

Empirical research on compensating wage differentials generally finds that union environments often negotiate better safety standards and compensation for their members, which can include compensating wage premiums for risky jobs. This contradicts the statement that compensating wage premiums are larger in nonunion than in union environments, as unions typically work to secure higher premiums for their members in risky jobs.

Regarding Empirical Research on Compensating Wage Differential, Which of the Following