Interindustry differentials can be attributed to a number of factors,including the industry's product market,the degree of capital intensity,the profitability of the industry,unionization,and gender mix of the workforce.

Question

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Any one of these factors alone or in combination with other factors explain interindustry pay differentials.For example,companies that operate in product markets in which there is relatively little competition from other companies tend to pay higher wages because these companies exhibit substantial profits.This phenomenon can be attributed to such factors as higher barriers to entry into the product market and an insignificant influence of foreign competition.

Interindustry Differentials Can Be Attributed to a Number of Factors,including