Which of the following can be used to help explain wage differences among different groups of workers?
A)human capital acquired through education
B)human capital acquired through job experience
C)compensating differentials
D)All of the above can explain wage differences.

Question

Quizplus · Accepted Answer

All three factors can contribute to wage differences among different groups of workers. Human capital, which includes education and job experience, can increase a worker's productivity and therefore increase their wage. Compensating differentials are wage differences that compensate workers for differences in job characteristics such as risk and working conditions.

Which of the Following Can Be Used to Help Explain