A compensating wage differential is a wage difference that
A) makes up for the high risk or poor working conditions of a job.
B) results because of women and minorities being paid less.
C) leads to more risks taken on the job.
D) is attributable to different demands for labor.
E) is due to discrimination.

Question

Quizplus · Accepted Answer

A compensating wage differential is a wage difference that compensates for the high risk or poor working conditions of a job. This means that workers who take on jobs with higher risks or poorer working conditions would expect to be paid more in order to compensate for those factors.

A Compensating Wage Differential Is a Wage Difference That