Self-selection:
A) has nothing to do with compensating wage differential.
B) leaves the compensating wage differential unchanged.
C) increases the compensating wage differential.
D) reduces the compensating wage differential.

Question

Quizplus · Accepted Answer

Self-selection can reduce the compensating wage differential because individuals who are more willing to accept certain job risks or undesirable conditions may self-select into those jobs, thereby reducing the need for higher wages to attract workers.

Self-Selection