In Searching for Empirical Evidence of the Existence of Compensating

question 24

Multiple Choice

In searching for empirical evidence of the existence of compensating differentials, all of the following problems are potentially an issue except:

• A) the wage-safety locus problem
• B) omitted variable bias in the wage equation
• C) error-in-variables problems for the risk variable
• D) simultaneous equation bias problem
• E) sample selection bias for the wage equation

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