compensating differential
Definition
The difference in wages offered to offset the desirability or undesirability of a job. If the job is considered undesirable because of elements of unpleasantness or risk, the differential is positive in the form of increased wages to offer incentive to the employee to take the job. If the job is considered especially desirable, the differential is negative in the form of lower wages. Also called compensating wage differential or equalizing difference.
Related Articles
- Introduction to Stocks *
- Common Stock Strategies - Part 1 *
- Savings Bonds *
- Understanding Stock Dividends *
- Investing In Costa Rican Property *
- Understanding Homeowner's Insurance Policies *
- What is a C Corporation? *
- Introduction to the Federal Reserve and its Structure *
Related Videos
http://www.businessdictionary.com/definition/compensating-differential.html
