Which of the following is an example of a compensating differential?
A)Two workers with different levels of on-the-job training earn different salaries.
B)Two workers whose jobs entail different working conditions earn different salaries.
C)Two workers whose jobs require different levels of technical expertise earn different salaries.
D)Two workers with different levels of natural ability earn different salaries.

Question

Quizplus · Accepted Answer

Compensating differential refers to the wage difference that compensates workers for differences in job characteristics such as working conditions, safety risks, and job security. In this case, two workers earning different salaries due to different working conditions is an example of compensating differential. Options A, C, and D do not relate to compensating differentials.

Which of the Following Is an Example of a Compensating