wage differential
wage differentialA difference in wage rates between two types of worker. Wage differentials may be on account of different levels of skill, different formal qualifications, between unionized and non-unionized firms, or between workers of different age, sex, or ethnic groups. In the UK wage differentials based on age are legal, while those based on sex or ethnic group are not. The desire of groups to maintain traditional differentials within occupations makes some economists fear that minimum wage laws would not just affect the unskilled, but would lead to general wage inflation. The desire to maintain differentials between occupations makes inflationary wage rises tend to spread around the economy. See also equalizing wage differential, and union/non-union wage differential.
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