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Compensating wage differential
 

 

A differential in wages intended to compensate workers for special non-pecuniary aspects of a job. Examples would be extra pay for work with hazardous substances or involving unsocial hours. The compensating wage differential for taking on a job which involves the possibility of accidental death is used to infer the value of life.

 

Reference: Oxford Press Dictonary of Economics, 5th edt.