A compensating differential is
A)a difference in pay due to nonmonetary characteristics of different jobs.
B)a high wage paid by employers to entice workers to be more productive.
C)the difference between the quantity of labor supplied and the quantity of labor demanded at the minimum wage.
D)due only to difference in the productivity of workers with different skills.

Question

Quizplus · Accepted Answer

A compensating differential is a difference in pay between different jobs that is meant to compensate for nonmonetary characteristics of the job, such as unpleasant working conditions or a higher risk of injury. It is not necessarily related to differences in productivity or an incentive to be more productive. The minimum wage is not directly related to compensating differentials.

A Compensating Differential Is