Question

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

Answer 1

Night shift employee's always get paid more than day shiff

Answer 2

The higher paying job has a compensating wage differential of $3 per Hour

Explanation:

Wage differential is used to analyze the relation between the wage rate and the unpleasantness or risk of the particular job.

Since Harry works at night, he is compensates with $3 over the normal hourly rate paid to Sally