We expect jobs that are inherently more dangerous to pay higher wages, which is a compensating differential.

Name: We expect jobs that are inherently more dangerous to pay higher wages, which is a compensating differential.
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Quizplus · Accepted Answer

This is correct, as the compensating differential theory suggests that jobs with higher risks or unpleasant job conditions will pay higher wages to compensate workers for the potential harm or discomfort involved.

We Expect Jobs That Are Inherently More Dangerous to Pay