Which statement is MOST likely an example of wage disparity due to differences in human capital?
A)The median earnings of White men are more than are the median earnings of African-Americans.
B)People with graduate degrees usually have higher earnings than do people who did not graduate from high school.
C)Nick Saban,the football coach at the University of Alabama,earns more than does an economics professor.
D)Crab fishermen on the Bering Sea earn more than do clerks who sell goldfish at a pet store.

Question

Quizplus · Accepted Answer

Wage disparity due to differences in human capital refers to the difference in earnings between individuals who possess different levels of education, skills, and experience. Option B states that people with graduate degrees usually have higher earnings than those who did not graduate from high school, which is an example of wage disparity due to differences in human capital. Options A, C, and D, do not specifically refer to education, skill, or experience levels but rather to other factors such as race, profession, and industry which can also affect wages.

Which Statement Is MOST Likely an Example of Wage Disparity