When comparing individuals' wages, what effect do differences in their levels of education and training have?

Question

Quizplus · Accepted Answer

Education and training can explain some of the differences in wages between individuals because higher education and specialized training often lead to higher productive capacity and more valuable skills in the labor market, which can result in higher wages. However, other factors such as experience, talent, demand, and supply for certain occupations, and discrimination can also affect wage differences. So, education and training only partially explain the existence of income inequality.

When Comparing Individuals' Wages, What Effect Do Differences in Their