If a firm has two plants, one in a desirable location and one in an undesirable location, workers located in the desirable location are likely to be paid more.

Name: If a firm has two plants, one in a desirable location and one in an undesirable location, workers located in the desirable location are likely to be paid more.
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Quizplus · Accepted Answer

Workers in the less desirable location might actually be paid more as a compensating differential for the less attractive attributes of the location.

If a Firm Has Two Plants, One in a Desirable