In the Context of Empirical Research on Compensating Differentials, Omitted

question 23

Multiple Choice

In the context of empirical research on compensating differentials, omitted variable bias may exist when:

• A) Important variables are not controlled for in the measurement of the wage-risk tradeoff.
• B) Irrelevant variables are included in the equation.
• C) Employers attempt to hide crucial safety information from their employees.
• D) The information about factors that are correlated with job risk is imperfect.
• E) Samples have selection issues.