If a job applicant had been willing to work for $10 an hour, but the employer pays her $18 an hour, the worker earns wage-related rent of $8 an hour.

Question

Quizplus · Accepted Answer

Wage-related rent refers to the difference between what a worker is willing to accept and what they are actually paid. In this case, the worker is willing to accept $10 but is paid $18, so the wage-related rent is $8 an hour.

If a Job Applicant Had Been Willing to Work for $10