Which scenario is most likely to result in a compensating wage differential?

Multiple choice question for Human Capital. Select an option, then review the explanation below.

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An employee has a more appealing appearance than a colleagueAn employee possesses higher educational qualifications than anotherAll of the above situations cause compensating differentialsAn employee exerts more effort compared to anotherAn employee agrees to work night shifts while another refuses

Explanation

A compensating wage differential arises when employees receive additional pay to offset undesirable job characteristics. Among the options, only willingness to work night shifts—a less desirable condition—typically leads to such a differential.

Practice related questions from the same subject.

1.From the perspective of the human capital theory, what is the role of education?
2.What does the signaling theory of education primarily suggest?
3.When two positions demand equal skills and experience, which job is generally the one offering higher pay?
4.Which statement accurately describes the relationship between attractiveness and earnings among workers?
5.Which profession has the highest potential to earn income comparable to a superstar?

Which scenario is most likely to result in a compensating wage differential?

Explanation

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