A compensating differential is a difference in wages due to higher levels of education or other forms of human capital.

Name: A compensating differential is a difference in wages due to higher levels of education or other forms of human capital.
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Quizplus · Accepted Answer

A compensating differential refers to the difference in wages that arises to compensate workers for non-monetary aspects of different jobs, such as risk, discomfort, or undesirable location, rather than differences in education or human capital.

A Compensating Differential Is a Difference in Wages Due to Higher