In empirical analyses of factors that help explain wages,
A)effort and ability are not likely to contribute to large differences in wages in the U.S. economy.
B)economists typically find that measurable factors explain less than half of the variation in wages.
C)economists typically find few factors that are not explicitly measurable.
D)unmeasurable influences on wage differences are found to be quite small.

Question

Quizplus · Accepted Answer

Empirical analyses of wages typically find that factors that can be easily measured, such as education and experience, explain less than half of the variation in wages. This suggests that unmeasurable factors, such as social networks and discrimination, may also play a significant role in wage differences.

In Empirical Analyses of Factors That Help Explain Wages