been designed to speed this adjustment and, in the process, reduce the
underlying discriminatory forces. These policies have been successful in
reducing male–female wage differentials in situations where the men and
women concerned are equally qualified and are in the same jobs.
Jobs with unpleasant working conditions usually pay higher wages than
more pleasant jobs requiring the same skills. Such differences in wages
are called “compensating differentials.” Any policy that attempts to
eliminate these differentials is likely to be ineffective.
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Other government pay-equity legislation is less successful because it
attempts to reduce or eliminate equilibrium wage differentials. Such policy
is designed to eliminate the wage differentials that exist between workers
in different jobs but who are deemed to have approximately the same skills
and responsibilities.