Asked by Sumayyah Bachooa on Jun 25, 2024
Verified
A compensating differential is a difference in wages due to higher levels of education or other forms of human capital.
Compensating Differential
Additional pay or benefits provided to employees to offset unpleasant aspects of a job.
Human Capital
Expertise, knowledge, and learned experiences of an individual or demographic, evaluated based on their monetary significance or cost to an entity or nation.
Education
The process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits through various forms of instruction or training.
- Attain understanding of compensating differentials and how they contribute to discrepancies in wages.
- Become aware of how human capital affects productivity and the setting of wages.
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Learning Objectives
- Attain understanding of compensating differentials and how they contribute to discrepancies in wages.
- Become aware of how human capital affects productivity and the setting of wages.
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