John is an Asian 23-year-old male,and Ken is an Asian 43-year-old male.Both John and Ken are economics majors,and they graduated from the same college with the same GPA - John in 2006 and Ken in 1986.John and Ken both are both financial advisers at the same brokerage firm.John earns $52,000 a year,and Ken earns $88,000 a year.Select the best explanation for this wage difference.

Question

Quizplus · Accepted Answer

The only difference between John and Ken is their age, which suggests that Ken has had more time to acquire more human capital through experience and job seniority. Therefore, it is likely that Ken has more human capital than John, which could explain the wage difference. Discrimination based on age or youth cannot be ruled out entirely, but without additional information, it cannot be assumed as the sole cause of the wage difference.

John Is an Asian 23-Year-Old Male,and Ken Is an Asian