Kalene and Jin both work at the local factory producing cars. Kalene earns $24 per hour working the day shift, and Jin earns $26 per hour working the night shift. Kalene and Jin do the same job, have the same experience, and have the same level of education. This means that the
A)higher-paying job has a compensating wage differential of $2 per hour.
B)higher-paying job has a compensating wage differential of $26 per hour.
C)higher-paying job is intrinsically more attractive than the lower-paying job.
D)factory is discriminating against Kalene because she is a woman.

Question

Quizplus · Accepted Answer

The compensating wage differential refers to the difference in pay for jobs that are essentially the same but have different working conditions, such as night shifts, which often pay more to compensate for the less desirable hours. In this case, Jin earns $2 more per hour for working the night shift, which is the compensating differential.

Kalene and Jin Both Work at the Local Factory Producing