The term "compensating differential" refers to
A)the fact that workers who do similar work should be paid the same wage.
B)the fact that some workers live further from their jobs than do other workers.
C)a wage difference that is due to unionization of some firms but not others.
D)a wage difference that arises from nonmonetary characteristics of different jobs.

Question

Quizplus · Accepted Answer

Compensating differentials refer to wage differences that exist due to nonmonetary characteristics of different jobs. For example, a job that is riskier or requires working in unpleasant conditions may provide higher pay to compensate for these factors.

The Term "Compensating Differential" Refers to