Compensating differentials are
A)non-monetary benefits from being employed, such as health-care benefits.
B)wages paid to workers where the supply of labor is great relative to demand.
C)higher wages that compensate workers for unpleasant aspects of a job.
D)higher wages that compensate the more experienced workers in a field.

Question

Quizplus · Accepted Answer

Compensating differentials are higher wages that compensate workers for unpleasant aspects of a job. For example, a job may require working in dangerous or uncomfortable conditions, or may involve working unusual hours. In order to compensate workers for these negative aspects of the job, employers may offer higher wages. This helps to ensure that the supply of workers willing to perform the job remains sufficient.

Compensating Differentials Are