Asked by
Linda Felan
on Oct 26, 2024
Verified
A small college employs two economists.Rob has been employed by the college for 15 years,and Nasrin has been employed for 1 year.Rob's salary is significantly higher than is Nasrin's,although both have their doctoral degrees in economics.Each professor averages one publication per year,and both are excellent teachers.Given this information,the wage difference is BEST explained by:
A) compensating differentials.
B) differences in human capital.
C) discrimination.
D) differences in talent.
Human Capital
Represents the economic value of a worker's experience and skills, including education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.
Differences in Talent
Variations in the natural abilities, skills, or competencies among individuals that can impact productivity and earnings.
Doctoral Degrees
Advanced academic degrees awarded by universities, recognizing the highest level of expertise in a specific field of study.
- Understand the impact of discrimination and income differences within the labor market.
- Recognize the variations in wages and their origins, including compensating differentials and wages for efficiency.
Verified Answer
HA
Learning Objectives
- Understand the impact of discrimination and income differences within the labor market.
- Recognize the variations in wages and their origins, including compensating differentials and wages for efficiency.