Compensating differentials lead to:
A)equal salaries for equal levels of human capital.
B)higher salaries for more unpleasant jobs.
C)lower salaries for more unpleasant jobs.
D)incomes based solely on productivity.

Question

Quizplus · Accepted Answer

Compensating differentials suggest that workers in more unpleasant or dangerous jobs receive higher wages to compensate for the higher levels of risk, discomfort, or inconvenience because workers often prefer better working conditions. Therefore, B is the correct answer as it implies a higher salary for a more unpleasant job.

Compensating Differentials Lead To