Which of the following is a market imperfection that might explain persistent wage differentials within an occupation?
A) geographical immobility of workers
B) readily available information about job opportunities and pay
C) principal-agent problems
D) compensating wage differentials

Question

Quizplus · Accepted Answer

Geographical immobility of workers can lead to persistent wage differentials within an occupation because workers may not be able to move to areas where wages are higher, leading to variations in pay for the same job in different locations.

Which of the Following Is a Market Imperfection That Might