Etymology
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compensation (n.)

late 14c., "action of compensating," from Latin compensationem (nominative compensatio) "a weighing one thing against another, a balancing," noun of action from past participle stem of compensare "to weigh one thing (against another)," thus, "to counterbalance," from com "with, together" (see com-) + pensare, frequentative of pendere "to hang, cause to hang; weigh; pay" (from PIE root *(s)pen-"to draw, stretch, spin").

Meaning "what is given in recompense" is from c. 1600; meaning "amends for loss or damages" is from 1804; meaning "salary, wages" is attested from 1787, American English. The psychological sense is from 1914.

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decompensation (n.)

"lack or loss of compensation," especially, in medicine, "deterioration of a structure that had worked through compensation," 1900, from de- + compensation.

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overcompensation (n.)

also over-compensation, 1917 in the psychological sense, translating German überkompensation, from over- + compensation. A term used by Alfred Alder to denote exaggerated striving for power in those who have an inner sense of inferiority.

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comp (n.)
"complimentary ticket," 1885, short for complimentary. Meaning "nonpaying guest" is attested by 1930s; generalized to "anything given free" by 1960s. As a verb, by 1974. Related: Comped; comping. As a shortening of compensation (especially worker's/workman's) it was in use by 1970s.
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*(s)pen- 

Proto-Indo-European root meaning "to draw, stretch, spin."

It forms all or part of: append; appendix; avoirdupois; compendium; compensate; compensation; counterpoise; depend; dispense; equipoise; expend; expense; expensive; hydroponics; impend; painter (n.2) "rope or chain that holds an anchor to a ship's side;" pansy; penchant; pend; pendant; pendentive; pending; pendular; pendulous; pendulum; pension; pensive; penthouse; perpendicular; peso; poise; ponder; ponderous; pound (n.1) "measure of weight;" prepend; prepense; preponderate; propensity; recompense; span (n.1) "distance between two objects;" span (n.2) "two animals driven together;" spangle; spanner; spend; spider; spin; spindle; spinner; spinster; stipend; suspend; suspension.

It is the hypothetical source of/evidence for its existence is provided by: Latin pendere "to hang, to cause to hang," pondus "weight" (perhaps the notion is the weight of a thing measured by how much it stretches a cord), pensare "to weigh, consider;" Greek ponos "toil," ponein "to toil;" Lithuanian spendžiu, spęsti "lay a snare;" Old Church Slavonic peti "stretch, strain," pato "fetter," pina "I span;" Old English spinnan "to spin," spannan "to join, fasten; stretch, span;" Armenian henum "I weave;" Greek patos "garment," literally "that which is spun;" Lithuanian pinu "I plait, braid," spandau "I spin;" Middle Welsh cy-ffiniden "spider;" Old English spinnan "draw out and twist fibers into thread," spiðra "spider," literally "spinner."

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amends (n.)
early 14c., "recompense, compensation for loss or injury," collective singular, from Old French amendes "fine, penalty, reparation, compensation," plural of amende "reparation," from amender "to amend" (see amend).
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decompensate (v.)

"lose the ability to maintain compensation," 1912, probably a back-formation from decompensation. Related: Decompensated; decompensating.

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redressal (n.)

"a setting right again," 1800, from redress (v.) + -al (2). Earlier noun were redress (n.) "reparation, compensation, adjustment" (late 14c.); redressing (early 15c.); redressment (1640s).

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reparation (n.)

late 14c., reparacioun, "repair, act of mending" (a sense now rare or obsolete), also "amends, compensation, recompense, satisfaction for injury, what is done to repair a wrong," from Old French reparacion and directly from Late Latin reparationem (nominative reparatio) "act of repairing, restoration," noun of action from past-participle stem of Latin reparare "restore, repair" (see repair (v.1)).

Reparations "compensation for war damaged owed by the aggressor" is attested from 1921, with reference to Germany, from French réparations (1919).

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ersatz (adj.)
1875, from German Ersatz "units of the army reserve," literally "compensation, replacement, substitute," from ersetzen "to replace," from Old High German irsezzen, from ir-, unaccented variant of ur- (see ur-) + setzen "to set," from PIE root *sed- (1) "to sit." As a noun, from 1892.
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