Question

Ditch-digging is a dirty, low-prestige job. The fact that it is low-paying serves to disprove the theory of compensating differentials. Discuss.

Answer 1

Ditch Digging can be considered as a low paying job though it is undesirable by many and therefore it indeed is opposing the theory of compensating differential. However if you go deep into that, will understand that which thing is one sort of job that need no or very minimal expertise and there is no such sort of qualification required to perform that task on the whole and it is considered as a unskilled labour work. In this regard people who are actually looking for immediate wages or in a crisis situation or actually unskilled for any work get to take up this and since the number of unskilled people are considerable even ditch digging has a certain amount of demand which makes the wages low.