Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 19, Problem 1QR
To determine
Reason for higher wages in coal mining.
Expert Solution & Answer
Explanation of Solution
Compensating differential exists in wages of coal miners. They are paid more than other workers with similar levels of education. This may be attributed to the dirty and dangerous nature of work in coal mining, as well as the long-term health problems that coal miner’s experience.
Economics Concept Introduction
Concept introduction:
Compensating differential: It is the difference in wages that arise to offset the nonmonetary characteristics of different jobs.
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Chapter 19 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
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