If labour markets were perfectly competitive,

Question

Quizplus · Accepted Answer

Even in a perfectly competitive labour market, wage differentials could still exist because of differences in workers and jobs. For example, workers with more education or experience or who possess specialized skills may be able to command higher wages than others. Similarly, jobs that are deemed more difficult, dangerous, or unpleasant may offer higher wages as a way of compensating workers for the risks and costs associated with those positions.

If Labour Markets Were Perfectly Competitive