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Other Papers on :Labour Market and Unemployment

P/E/194. Compensating Wage Differential Theory

(2003, 2000 words)

The paper deals with the theory of economics concentrating on the issues related to wages. The author presents an overview of Compensating Wage Differential Theory (CWD) discussing its historical background and fundamental elements. The modern approach to compensating wage differentials is described focusing on the relationship between wages and risk. The drawbacks of the CWD theory are outlined.
 
   
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