Compensating wage differential

Compensating Wage Differential
The supply of labour depends on various factors such as:
Wages
Qualifications required
Non monetary benefits / costs ...

COMPENSATING WAGE DIFFERENTIALS
Different wages paid to different workers or in different markets that adjust for differences in the jobs or in the productivity of the workers. Wage differentials occur for many reasons.

compensating wage differential a difference in wages for people with similar skills based on some characteristic of the job, such as riskiness, discomfort, or convenience of the time schedule. (12) ...

These so-called compensating wage differentials, reductions in wages due to higher nonwage benefits, have important policy implications.

See also: Monopoly, National income, Productivity, Population, Job