A new teacher often makes less than a teacher with 20 years' experience because of:

Question

Quizplus · Accepted Answer

The answer is differences in human capital. Human capital represents the skills, knowledge, and experience that a worker possesses, which can affect their productivity and thus their salary. A teacher with 20 years of experience has likely accumulated more human capital than a new teacher, allowing them to negotiate a higher salary. Discrimination and differences in physical capital are unlikely to be the main factors affecting a teacher's salary, and efficiency wages refer to a different concept altogether.

A New Teacher Often Makes Less Than a Teacher with 20