Suppose the distribution of innate ability is distributed symmetrically throughout a population but that the wage distribution is positively skewed. What most likely explains this?
A) a regressive tax code.
B) decreased immigration.
C) differences in human capital accumulation.
D) a decreasing Gini coefficient.
E) a noncompetitive labor market

Question

Quizplus · Accepted Answer

Differences in human capital accumulation, such as education, training, and experience, can lead to a positively skewed wage distribution even if innate ability is symmetrically distributed. This is because individuals with more human capital are often able to command higher wages, leading to a wider spread in the wage distribution.

Suppose the Distribution of Innate Ability Is Distributed Symmetrically Throughout