Asked by Keanna Ayala on Jul 07, 2024

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Compensating differentials are differences in wages related to the characteristics of a job.

Compensating Differentials

Wage differentials that arise to compensate workers for the desirability or undesirability of a job's characteristics.

Job Characteristics

Encompass the attributes, roles, responsibilities, and overall environment of a particular job that influence the job holder's motivation and satisfaction levels.

  • Comprehend the notion of compensating differentials and its influence on variations in wages.
  • Examine the role of nonfinancial job features in the compensation disparities.
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Frank DalicandroJul 07, 2024
Final Answer :
True
Explanation :
Compensating differentials refer to the differences in wages that arise to offset the desirability or undesirability of certain job characteristics, such as risk, effort, or location.