The compensating wage differential is:
A) the pay a worker receives for working overtime.
B) health insurance and other non pecuniary benefits all workers receive.
C) the extra wage given to compensate workers for bad working conditions.
D) the extra wage that will cause all workers to accept bad working conditions.
E) the higher wage caused by government interventions such as the minimum wage.

Question

Quizplus · Accepted Answer

The compensating wage differential refers to the extra wage given to compensate workers for bad working conditions. This can include hazardous environments, long hours, or other undesirable factors that make the job less appealing to workers. Employers will offer a higher wage in order to attract workers to these positions, but the extra pay is meant to make up for the negative aspects of the job.

The Compensating Wage Differential Is