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.

---

Definitions:

Diagnostic and Statistical Manual of Mental Disorders

A comprehensive classification of officially recognized psychiatric disorders, published by the American Psychiatric Association, serving as an authoritative guide for diagnosis.

Theoretical Assumptions

Foundational ideas that are accepted as true within a theoretical framework, guiding research and practice.

Classification Systems

Frameworks or methods used to organize or categorize entities or phenomena based on shared characteristics or criteria.

Psychological Symptoms

Manifestations of mental or emotional distress, such as anxiety, depression, hallucinations, or obsessions, that may suggest the presence of a psychological disorder.