Which of these statements is true regarding the validity of the human capital theory as it applies to the pay gap?
A) There is no evidence that human capital theory explains the difference in men's and women's earnings.
B) While factors such as education and age do affect earnings, the earnings of men and women with the same levels of education and prior experience are still unequal.
C) Women earn less than men because they work fewer hours.
D) Research indicates that there is actually no difference in men's and women's wages when the type of work is taken into account.

Question

Quizplus · Accepted Answer

Human capital theory suggests that differences in earnings can be explained by differences in education, experience, and skills. However, even when these factors are accounted for, a pay gap between men and women persists, indicating that other factors, such as discrimination, may also play a role.

Which of These Statements Is True Regarding the Validity of the Human