Compensating Differential

Business, Legal & Accounting Glossary

Definition: Compensating Differential

Compensating Differential

Full Definition of Compensating Differential

A positive or negative amount by which the salary or payment for a job is adjusted in accordance with the attractiveness of that job for potential workers. Difficult, dangerous, or otherwise undesirable jobs tend to pay more to help recruit and retain workers, while employers are able to offer less overall money for more desirable jobs that are preferred by job-seekers.

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Page URL
Modern Language Association (MLA):
Compensating Differential. Payroll & Accounting Heaven Ltd.
December 06, 2021
Chicago Manual of Style (CMS):
Compensating Differential. Payroll & Accounting Heaven Ltd. (accessed: December 06, 2021).
American Psychological Association (APA):
Compensating Differential. Retrieved December 06, 2021
, from website:

Definition Sources

Definitions for Compensating Differential are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.