Holly and Emily both have bachelor's degrees in nursing from the same university.Both have been nurses for 8 years.Holly works from 11 P.M.until 7 A.M. ,and Emily works from 7 A.M.until 3 P.M.Holly's salary is $1 000 per month,which is higher than Emily's salary.This is an example of a wage disparity due to a compensating differential.

Question

Quizplus · Accepted Answer

A compensating differential is when an employer offers higher pay to compensate for less desirable working conditions or work hours. In this case, Holly works overnight hours which are less desirable, so she receives a higher salary to compensate for that difference.

Holly and Emily Both Have Bachelor's Degrees in Nursing from the Same