A difference in wages that arises to offset the nonmonetary characteristics of different jobs is known as
A)a compensating differential.
B)an inefficiency wage.
C)the equilibrium difference.
D)a union wage.

Question

Quizplus · Accepted Answer

Compensation differential refers to the higher wages that employees in certain jobs receive to compensate for the non-monetary characteristics of the job such as unpleasant working conditions, risk of injury, or long hours. In such cases, workers are willing to accept lower pay in exchange for the advantages of the job. For instance, a job that requires working late-night shifts might offer higher compensation to attract candidates due to the inconvenience-factor of the job.

A Difference in Wages That Arises to Offset the Nonmonetary