Which factor leads to wage differentials?
A) Homogeneous workers
B) Purely competitive labor markets
C) Investments in human capital by some workers
D) Workers who are indifferent about which jobs they might hold

Question

Quizplus · Accepted Answer

Wage differentials occur when workers invest in their human capital, such as through education and training, which increases their productivity and therefore their earning potential. Other factors, such as job requirements and working conditions, also contribute to wage differentials. Factors A, B, and D do not explain wage differentials.

Which Factor Leads to Wage Differentials