Compensating differentials are:

a. non-monetary benefits from being employed, such as health-care benefits.

b. wages paid to workers where the supply of labor is great relative to demand.

c. higher wages that compensate the more experienced workers in a field.

d. higher wages that compensate workers for unpleasant aspects of a job.

Question

Business

William Potts

11 July, 12:32

Compensating differentials are:

a. non-monetary benefits from being employed, such as health-care benefits.

b. wages paid to workers where the supply of labor is great relative to demand.

c. higher wages that compensate the more experienced workers in a field.

d. higher wages that compensate workers for unpleasant aspects of a job.

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Answers (1)

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Katherine Howard · Answer 1

The correct answer is d. higher wages that compensate workers for unpleasant aspects of a job.

Explanation:

The compensatory differentials base the determination of the remuneration of the works depending on their level of exposure and danger, which is determined taking into account internal and external factors specific to the task. An easy way to identify whether this assignment should be made is by taking the level of danger and detail required to do the job, and also the number of people who would be interested in doing it. Generally a very small group of people will participate in processes of this type.

In the opposite case, the works with less exposure and with greater demand, will have a lower allocation since many people will be interested in doing them.