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Let's generalize the idea of compensating differentials by considering the markets for good and bad jobs. You can imagine good and bad as any job

Let's generalize the idea of compensating differentials by considering the markets for good and bad jobs. You can imagine good and bad as any job characteristic that workers have preferences about. Demand and supply in the market for good jobs are: Demand and supply in the market for bad jobs are: What is the compensating differential for bad jobs

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