What are compensating differentials and how might they explain a portion of the gender wage gap?

Solutions

Expert Solution

A compensating wage differential is nothing but the additional.money that has to be paid to a worker in order to please him or even motivate him to accept a job that he is actually unwilling to perform when compared to the other jobs that he could actually involve in.

It can actually be mentioned that the difference is the characteristics of the job can actually result in the trend of the earnings between the two different genders. Consider I'm a country, people are unwilling to work jobs which involve high physical strenuous work. As a result of this, one can actually attribute that male workers are more likely to perform it easier if it involves high physical strenuous work when compared to that of female workers due to the secondary sexual characteristics differences in both the genders. This is the reason why compensating differential could me more as in case of male than that of female where this is the reason why compensating differential can get to explain a portion of gender wage gap. For certain other jobs, there can be chance that female workers might have more compensating differentials.

Rahul Sunny answered 9 months ago

Next > < Previous

Related Solutions

1- Define and give examples of compensating wage differentials. 2- What is the impact of a...

1- Define and give examples of compensating wage differentials. 2- What is the impact of a minimum wage law on unskilled labor? Give examples

Define and discuss compensating wage differentials and the hedonic wage theory (HWT). Show how HWT applies...

Define and discuss compensating wage differentials and the hedonic wage theory (HWT). Show how HWT applies to employee benefits. Discuss employee considerations and preferences (with the help of indifference curves) and employer considerations and preferences (with the help of isoprofit curves). Illustrate the join determination of wages and benefits under HWT.

11. Compensating wage differentials will reflect worker's evaluation of the value of nonwage job characteristics only...

11. Compensating wage differentials will reflect worker's evaluation of the value of nonwage job characteristics only if: A. workers have perfect information. B. there is sufficient worker mobility. C. workers maximize utility, not income. D. All of the above are correct. E. None of the above is correct. 1.In the context of intergenerational inequality, regression toward the mean is captured by which of the following? A. The tendency for the tax code to erode inequality by targeting the mean tax...

Evaluate following statement using the theory on compensating wage differentials: “Mandating safety at work will surely...

Evaluate following statement using the theory on compensating wage differentials: “Mandating safety at work will surely improve worker’s welfare.” Use diagrams and a few bullet-points to justify your thinking.

Explain with the aid of a diagram how a compensating wage differential can emerge in a...

Explain with the aid of a diagram how a compensating wage differential can emerge in a competitive labour market. Assume two occupations they are identical, except that one has some undesirable characteristic. Also, assume all workers dislike that characteristic equally. Assume the labour market is operating at full employment.

Explain with the aid of a diagram how a compensating wage differential can emerge in a...

Explain with the aid of a diagram how a compensating wage differential can emerge in a competitive labour market. Assume two occupations they are identical, except that one has some undesirable characteristic. Assume that workers have heterogeneous preferences vis-a-vis the undesirable job characteristic.

1. Thinking about occupational segregation as a partial explanation for the gender wage gap: A. What...

1. Thinking about occupational segregation as a partial explanation for the gender wage gap: A. What is meant by supply side explanations? Give 2 examples. B. What is meant by demand side explanations? Give 2 examples.

Using the labor demand and supply framework, explain why the gender wage gap was relatively constant...

Using the labor demand and supply framework, explain why the gender wage gap was relatively constant between 1885 and 1980, and why the ratio of female–male earnings has increased from 0.628 in 1980 to 0.805 in 2010.

How does gendered job segregation and the gender wage gap violate assumptions about the economic system...

How does gendered job segregation and the gender wage gap violate assumptions about the economic system in the US and the values associated with it? • First, define and explain both: gendered job segregation and the gender wage gap. • Then, discuss and evaluate policy approaches, providing strategies that would be successful in minimizing gendered job segregation and the wage gap.

The teacher salary schedule has no compensating differentials of any kind. In this labor market, what...

The teacher salary schedule has no compensating differentials of any kind. In this labor market, what does that mean? What would it be like, instead, to have compensating differentials? Describe how the lack of compensating differentials affects the teacher supply. Does the lack of compensating differentials have any other repercussions in the market?

Subjects