The return to investment in human capital is observed
A)only when workers are assigned identical tasks.
B)in the wage differential between workers.
C)in the high school dropout rate in inner-city urban school districts.
D)in the low wages of educated factory workers.

Question

Quizplus · Accepted Answer

The return to investment in human capital is observed in the wage differential between workers, i.e., individuals who have invested in their education and skills are able to command higher wages in the labor market compared to those who haven't. A and D are incorrect as they present examples that do not indicate the return to investment in human capital. C is also incorrect as a high school dropout rate does not necessarily indicate the return to investment in human capital.

The Return to Investment in Human Capital Is Observed