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

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.

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