Remarks on Compensation Differentials

To understand fully the cost relation of two compensation acts it is necessary to consider in detail the individual parts which appreciably affect the amount of compensation awarded. As the present day compensation laws have so many elements which enter to a perceptible degree into the determination of the cost of the act it becomes highly desirable to have for expressing their cost relationship some simple expression which is representative of the whole law. It is the function of the compensation differential to serve in this way as an approximate measure of the cost relation of two compensation acts.