a-coal-miner-earns-25-per-hour-while-a-retail-worker-earns-15-per-hour-what-econ

Question

A coal miner earns $25 per hour, while a retail worker earns $15 per hour. What economic concept explains this wage difference?

Accepted Answer

Compensating differential, due to the higher risk and unpleasantness of mining.

Answer

Wage discrimination, based on industry.

Answer

Efficiency wages, to increase productivity in mining.

Answer

Minimum wage laws, affecting the retail sector.

A coal miner earns \$25 per hour, while a retail worker earns \$15 per hour. What economic concept explains this wage difference?