Q
If a person who works in coal mine gets paid more than a person with a similar background and skills who works in a safer job, then ?
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A
A. Coal miners must have greater human capital than others
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B
B. We have observed a compensating differential
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C
C. Coal miners must be more attractive than other workers
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D
D. We have evidence of discrimination against workers outside the coal mine
Correct Answer:
B. B. We have observed a compensating differential
