Compensating wage differentials

Question

Quizplus · Accepted Answer

Compensating wage differentials are additional amounts of money that employers pay to attract workers to jobs that are otherwise less desirable due to factors like danger, discomfort, or inconvenience. This concept does not specifically relate to the status of workers being domestic-born, illegal immigrants, or their efforts to discourage illegal immigrants from entering low-wage labor markets. Instead, it's a broader economic principle that applies to making less desirable jobs more attractive to potential employees by offering higher wages.

Compensating Wage Differentials