Holly and Emily both have a BS in nursing from the same college.Both have been nurses for eight years.Holly works from 11 P.M.until 7 A.M. ,and Emily works from 7 A.M.until 3 P.M.Holly's salary is $1,000 per month higher than is Emily's salary.This is an example of a wage disparity due to a compensating differential.

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A compensating differential is a difference in salary that compensates for differences in work conditions, such as working night shifts. In this case, Holly's higher salary compensates for the less desirable work hours she has to work compared to Emily. Therefore, this is an example of a wage disparity due to a compensating differential.

Holly and Emily Both Have a BS in Nursing from the Same