What is a compensating differential? Give an example. A compensating differentia

Question

What is a compensating differential? Give an example. A compensating differential is O A. when a person is paid a lower wage or excluded from an occupation based on an irelevant individual characteristic such as gender. O B. when a person is paid a lower wage or excluded from an occupation based cn an irelevant individual characteristic such as a person beling dirty. ° C. when workers underestimate the true risk of their job, such as when workers refuse to believe their job is hazardous. 0 D. when higher wages are paid to compensate a worker for unpleasant aspects of a job, such as when workers are paid higher wages for cleaner work. O E. when higher wages are paid to compensate a worker for unpleasant aspects of a job, such as when workers are paid higher wages for dangerous work.

Explanation / Answer

When higher wages are paid to compensate a worker for unpleasant aspects of a job , such as when workers are paid higher wages for dirty work.

Compensating Differential :It means providing a worker a higher wage as compensation to accept an undesirable job such as a job which is hazardious , dirty, long hours etc

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