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If a person who works as a commercial fisherman gets paid more than a person with a similar background and skills who works in a safer job, then a. commercial fishermen must have greater human capital than others b. we have observed a compensating differential c. commercial fishermen must be more attractive than other workers d. we have evidence of discrimination against workers outside of commercial fishing

Ask by Huang John. in the United States
Mar 10,2025

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We have observed a compensating differential.

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Bonus Knowledge

If a person working as a commercial fisherman earns more than someone in a safer job, it's likely due to the risks and challenges associated with fishing. This phenomenon is known as a compensating differential, where higher wages are provided to attract workers to jobs that are less desirable due to danger or other unfavorable conditions. Commercial fishing is notorious for its hazards – rough seas, unpredictable weather, and the physical demands contribute to its status as a high-risk occupation. This risk often results in higher pay to offset the potential dangers, making the job appealing to those willing to brave the challenges for a larger paycheck, while also creating a balance in the labor market.

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