Question

In the United States in​ 2011, there were 104 fatalities per​ 100,000 workers in the logging industry. This is the​ second-highest rate after the fisheries industry. Everything else​ equal, would you expect workers in the logging industry to be paid higher wages than workers with similar levels of education in other​ industries? Explain. A. ​Yes, loggers should be paid higher wages to compensate for risk. B. ​Yes, loggers deserve higher wages due to​ skill-based technological changes. C. ​No, workers in the logging industry should be paid lower wages because they have less human capital. D. ​No, those workers in the logging industry should receive lower wages due to statistical discrimination.

Answer 1

Answer:

A

Explanation:

Wage differentials is the differences in wages paid to labour with different skills within the same industry or difference in wages paid to labour with the same skills but in different industries.

Reasons for wage differentials

1. level of risk of the job : the more risky a job is, the higher the wages that would be paid to labour.

2. Level of education : the more educated labour is, the higher the wages received.

3. Labour union : the labour union of a particular industry may institute a law that stipulates the wages to be paid to labour.

4. Geographical location : labour working in a developed country is more likely to be paid higher than labour carrying out the same job role in a developing country