The fact that wage differentials continue to exist across different groups of workers leads economists to believe that
A) discrimination by customers is the most common type of economic discrimination.
B) differences in human capital and job characteristics must be important in explaining the differences in wages.
C) firms apparently are not profit maximizers.
D) the market has failed to properly allocate wages to different workers.

Question

Quizplus · Accepted Answer

Differences in human capital (such as education, skills, and experience) and job characteristics (such as working conditions and job location) are key factors that explain wage differentials among workers.

The Fact That Wage Differentials Continue to Exist Across Different