What are compensating differentials?
A)Nonmonetary benefits from being employed, such as health-care benefits.
B)Wages paid to workers where the supply of labour 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 refer to the higher wages that workers receive for doing jobs that are unpleasant or have other negative aspects, such as exposure to dangerous working conditions. This extra compensation is meant to offset the "cost" of doing the job and make it more attractive to workers.

What Are Compensating Differentials