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Which of the following is likely to generate a compensating differential ?

Correct answer: E. One employee is willing to work the nightshift while another is not.

  • A. One employee is more attractive than another
  • B. One employee is more educated than another
  • C. All of these answers generated
  • D. One employee works harder than another
  • E. One employee is willing to work the nightshift while another is not.

Explanation

A compensating differential is extra pay for an undesirable job characteristic, such as night work. Attractiveness, education, and effort describe worker characteristics rather than compensation for job conditions.

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