A compensating differential is
A) a difference in pay due to nonmonetary characteristics of jobs.
B) an high wage paid by employers to entice workers to be more productive.
C) the difference between the quantity of labor supplied and the quantity of labor demanded at the minimum wage.
D) equivalent to a union wage.

Question

Quizplus · Accepted Answer

A compensating differential refers to the difference in wages or salaries paid to individuals for performing similar work or jobs due to non-monetary characteristics such as the level of risk, convenience, or working conditions. For example, a job that involves working in hazardous conditions may offer a higher wage than a job that is less dangerous.

A Compensating Differential Is