When workers who work the night shift are paid more than those who do identical work on the day shift,how is this characterized
A)as a discriminatory wage practice
B)as a compensating differential
C)as a wage inequity
D)as a market inefficiency

Question

Quizplus · Accepted Answer

This is characterized as a compensating differential because workers on the night shift are being paid a higher wage to compensate for the inconvenience and potential negative health effects of working during non-traditional hours. It is not discriminatory as all workers have the opportunity to work the night shift and receive the higher pay. It is also not a wage inequity as both groups are receiving equal pay for equal work. There is no indication that this is a market inefficiency.

When Workers Who Work the Night Shift Are Paid More