When some jobs are inherently more risky or unpleasant than other jobs,different workers will be paid different wages because of

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Compensating differentials refer to the higher wages that are paid to workers who perform jobs that are more risky or unpleasant than other jobs. This compensates them for the additional discomfort or danger associated with their work. Differences in human capital and access to capital can also affect wages, but in the context of risky or unpleasant jobs, compensating differentials are the primary factor driving wage differences. Discrimination is not a factor that should be considered in determining wage differentials.

When Some Jobs Are Inherently More Risky or Unpleasant Than