The Equilibrium Compensating Wage Differential Between Two Occupations in the Same

question 21

Multiple Choice

The equilibrium compensating wage differential between two occupations in the same city is $10 per hour.Both occupations have equivalent training requirements.Shannon works in the higher-paying occupation and would have been willing to do so even if the compensating differential was $5 per hour.Therefore,

• A)Shannon will migrate to the lower-paying occupation
• B)Shannon must have a greater distaste than the typical worker for the nonmonetary characteristics of her occupation
• C)the equilibrium compensating wage differential is more than enough to prevent Shannon from moving to the other job
• D)the higher-paying occupation cannot have a perfectly competitive labor market
• E)Shannon must have a greater preference than the typical worker for the lower- paying occupation

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Definitions:

Female Students

Students who identify as female and are engaged in the pursuit of education at various academic levels.

Hispanic Wage Rate

The Hispanic Wage Rate typically refers to the average earnings of Hispanic or Latino workers, often analyzed in economic studies concerning demographic wage gaps.

Discrimination Coefficients

Statistical measures used to differentiate or distinguish between different categories or groups in analyses.

Labor Market

A term that refers to the supply of labor and the demand for labor by employers, where wages are determined.