Regarding Empirical Research on Compensating Wage Differential, Which of the Following

question 14

Multiple Choice

Regarding empirical research on compensating wage differential, which of the following is NOT correct?

• A) Compensating wage premiums are larger in nonunion than in union environments.
• B) Empirical evidences support that individuals would have to be compensated for bearing the risk of unemployment.
• C) Empirical evidence shows that overall compensation inequality increased even more than wage inequality.
• D) Compensating wage premiums are paid for work hazards and they increase with the seriousness of the risk.
• E) People in poorer countries are willing (more realistically, constrained) to take on more risk in return for smaller wage increases than are people in richer countries.

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Definitions:

Outstanding Stock

The total shares of stock that are owned by investors, including shares held by institutional investors and company insiders.

Regular Cash Dividend

A fixed amount paid to shareholders out of a company's profits on a regular schedule.

Liquidating Dividend

A type of dividend paid by a company from its capital rather than its earnings, often during dissolution or winding down.