One piece of evidence in favor of the efficiency wage model is that some sectors of the economy pay relatively high wages, whereas other sectors pay lower wages. This supports the efficiency wage model as it seems to provide evidence of what?
A. High-wage firms take advantage of delayed-compensation contracts.
B. Workers voluntarily provide bonds in case they are caught shirking.
C. Unemployment is constant across sectors.
D. Dual labor markets exist.
E. There are compensating differentials being paid depending on the type of work being done.
Answer: D
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