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Which of the following things can compensate for differences in wages that workers...

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brooke89 | Student, Undergraduate | Honors

Posted October 28, 2012 at 2:03 PM via web

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Which of the following things can compensate for differences in wages that workers receive?

 

diferences in worker training and skills

differences in the nonmonetary characteristics of jobs

geographic immobilities

discrimination in hiring and firing

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted October 28, 2012 at 2:22 PM (Answer #1)

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The only possible answer here is the second option given.  All of the other answers can help to explain why there are wage differentials, but do not do anything to compensate for those differentials.

If two jobs have very different pay, it may be that the job with the lower pay has some other forms of compensation.  For example, a job with lower pay might offer more flexible hours that make it more attractive to some.  This would allow that job to continue to attract applicants even though its pay is lower than that of other jobs.

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