Asked by Rachel Oftedahl on Jun 25, 2024
Verified
Wages of doctors tend to be higher than wages of dental hygienists. Which of the following is not a compensating differential explaining the difference in wages?
A) Doctors have the stress of being responsible for other peoples' lives, whereas dental hygienists do not.
B) Doctors are on call to work nights and weekends, whereas dental hygienists work traditional business hours.
C) Doctors must pay for malpractice insurance in case they are sued for a mistake on the job.
D) Doctors often work in the safe environment of a hospital where dental hygienists do not.
Compensating Differential
The difference in wages that arises to compensate workers for the non-monetary aspects of different jobs, like risk levels, working conditions, or job location.
Malpractice Insurance
A type of professional liability insurance purchased by healthcare professionals to cover the cost of being sued for malpractice.
- Comprehend the reasons behind wage disparities such as education, skills, job responsibilities, and working conditions.
Verified Answer
MH
Muhammad HammadJun 29, 2024
Final Answer :
D
Explanation :
Compensating differentials refer to the differences in wages that compensate for the desirability or undesirability of a job, including factors like risk, stress, and hours worked. The statement about doctors working in a safer environment (D) does not explain a compensating differential for higher wages, as safer working conditions would typically not justify higher pay.
Learning Objectives
- Comprehend the reasons behind wage disparities such as education, skills, job responsibilities, and working conditions.