Estimates of the Compensating Wage Differentials Associated with Particular Job

Multiple Choice

Estimates of the compensating wage differentials associated with particular job characteristics are valid only if

A) all other factors that influence worker's wages are held constant.
B) non-wage characteristics of the job are allowed to vary by sector.
C) firms are willing to pay higher wages to more skilled workers.
D) the compensation wage equals the worker's marginal cost.
E) the firm provides non-pecuniary compensation for risks that workers encounter on the job.