Question

Chloe and Guilherme both work at the local factory producing cars. Chloe earns $22 per hour working the day shift, and Guilherme earns $25 per hour working the night shift. Chloe and Guilherme do the same job, have the same experience, and have the same level of education. This means that the

Answer 1

Answer:

The night job has a compensating wage differential of $3 per hour.

Explanation:

All work carried out in abnormal conditions, that is, in a different schedule from the one usually regulated by labor laws, or a work in which there are components that make it unhealthy for the worker, among others, has a salary compensation that makes be paid more than those jobs that do not have the aforementioned characteristics.

In the example, work performed during daytime has a wage of $ 22 per hour, while work performed during night hours has a wage of $ 25 per hour. Thus, it is clearly seen how in the case there is a compensating wage differential as a consequence of said special work circumstance.