Compensating differential
WAGE DIFFERENTIAL DUE TO THE JOB CHARACTERISTICS
Equalizing difference; Equalizing differences; Compensating wage differentials; Compensating wage differential; Compensating difference; Compensating differences; Compensating wages
Wage differential is a term used in labour economics to analyze the relation between the wage rate and the unpleasantness, risk, or other undesirable attributes of a particular job. A compensating differential, which is also called a compensating wage differential or an equalizing difference, is defined as the additional amount of income that a given worker must be offered in order to motivate them to accept a given undesirable job, relative to other jobs that worker could perform.