Which of the following is not an example of a compensating differential?
A)paying workers who do dull, boring work higher wages than workers who do fun, interesting work, all else equal
B)paying workers who work on the night shift higher wages than workers who work the day shift, all else equal
C)paying workers who do more dangerous work higher wages than workers who do less dangerous work, all else equal
D)paying workers with PhDs higher wages than workers with BAs, all else equal

Question

Quizplus · Accepted Answer

Paying workers with different levels of education differently is not a compensating differential. Compensating differentials are payments made to workers for accepting undesirable job characteristics or working conditions, such as dangerous work or working on the night shift. Education level does not fall under this category.

Which of the Following Is Not an Example of a Compensating