Which of the following is an example of a compensating differential?
A)paying workers with more years of experience higher wages than workers with fewer years of experience, all else equal
B)paying workers who work on the day shift lower wages than workers who work the night shift, all else equal
C)paying accountants who have passed the Certified Public Accountant exam higher wages than accountants who have not passed it, all else equal
D)All of the above are examples of compensating differentials.

Question

Quizplus · Accepted Answer

Compensating differentials refer to wage differences that arise to compensate workers for non-monetary aspects of different jobs, such as working conditions. In this case, night shift work is typically less desirable than day shift work, so higher wages compensate for the inconvenience or difficulty of working at night.

Which of the Following Is an Example of a Compensating