A registered nurse in Tulsa, Oklahoma makes a lower wage than an equally skilled registered nurse in San Francisco. This is an example of a compensating differential.

Question

Quizplus · Accepted Answer

Compensating differentials refer to the higher or lower wages offered to workers to compensate for the desirability or undesirability of a job or location. In this case, the higher cost of living in San Francisco compared to Tulsa likely necessitates higher wages to attract equally skilled nurses.

A Registered Nurse in Tulsa, Oklahoma Makes a Lower Wage