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"Many of the lowest-paid people in society—for example, short-order cooks—also have relatively poor working conditions. Hence, the notion of compensating wage differentials is disproved." Do you agree? Explain.

User MaxCore
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No, the wage is low for occupations with poor working conditions because the supply of unskilled workers is high relative to the demand for them.

Step-by-step explanation:

A compensatory difference also known as a compensatory differential or an equal difference is defined as the additional amount of income to be offered to a specific employee in order to motivate them to accept a certain undesirable job compared to other jobs that the employee might perform.

When unqualified workers ' supplies are high compared with their production, their wages are low. In that case it is the disproportionate supply of low-wage workers who are compromised by the principle of compensating salary differentials.

User Sethbro
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