Which of these statements regarding the validity of the human capital theory as it applies to the pay gap is true?
A) Human capital theory is unable to explain the difference in men's and women's earnings.
B) While factors such as education and age do affect earnings, the earnings of men and women with the same levels of education and prior experience are still unequal.
C) Women earn less than men because they work fewer hours.
D) Research indicates that there is actually no difference in men's and women's wages when the type of work is taken into account.

Question

Quizplus · Accepted Answer

While human capital theory does account for factors such as education and experience in explaining differences in earnings, research has shown that even when men and women have the same levels of education and prior experience, there is still a significant pay gap. Therefore, while the theory may partially explain the pay gap, it does not fully account for it. Choices A, C, and D are all incorrect based on current research findings.

Which of These Statements Regarding the Validity of the Human