Studies of wages by labor economists indicate that measurable variables such as age, job characteristics, years of education, and years of experience account for
A)virtually none of the variation in wages in our economy.
B)some, but less than 50 percent of the variation in wages in our economy.
C)about 75 percent of the variation in wages in our economy.
D)almost all of the variation in wages in our economy.

Question

Quizplus · Accepted Answer

While these measurable variables do have an impact on wages, they only account for some, but less than 50 percent of the variation in wages in our economy, according to studies by labor economists. Other factors such as discrimination, bargaining power, and market conditions also play a role in determining wages.

Studies of Wages by Labor Economists Indicate That Measurable Variables