If a person who works in coal mine gets paid more than a person with a similar background and skills who works in a safer job, then ?

A. coal miners must have greater human capital than others
B. we have observed a compensating differential
C. coal miners must be more attractive than other workers
D. we have evidence of discrimination against workers outside the coal mine

Correct Answer: we have observed a compensating differential ✔

Last Updated: June 11, 2019