Sentences with phrase «compensating wage differential»

One reason workers are willing to take on risky jobs is because they are paid a compensating wage differential when the risk of death is high.

One study by economist Elaine McCrate found that any reduction in wages associated with the benefit of flexibility is modest at best and, in fact, many jobs with greater flexibility have higher wages.137 Furthermore, the volatility of earnings for many independent contractors would offset any compensating wage differentials, because workers can not compare the value of flexibility to higher earnings when they aren't able to predict their earnings as independent contractors.138