Which of the following is a compensating differential?
A) Tiger Woods gets paid more than a college professor.
B) A window washer working in a suburban residential subdivision gets paid less than one who is washing windows on the outside of a skyscraper.
C) A nuclear scientist gets paid more than a janitor working in the same building.
D) On average, White men get paid more than women of all ethnicities.

Question

Quizplus · Accepted Answer

Compensating differentials refer to differences in wages that arise to compensate workers for non-monetary aspects of different jobs, such as risk or undesirable conditions. In this case, the window washer on a skyscraper is paid more due to the higher risk involved compared to the one in a suburban area.

Which of the Following Is a Compensating Differential