Since measurable factors such as years of experience and years of education explain less than half of the variation in wages, ability, effort, and chance must play a significant role in determining wages.

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Quizplus · Accepted Answer

The statement is true because the unexplained variation in wages, after accounting for measurable factors like years of experience and education, suggests that other factors such as individual ability, effort, and chance (luck) significantly influence wage differences among individuals.

Since Measurable Factors Such as Years of Experience and Years