A small college employs two economists. Rob has been employed by the college for 15 years, and Nasrin has been employed for 1 year. Rob's salary is significantly higher than Nasrin's, although both have their doctoral degrees in economics. Each professor averages one publication per year, and both are excellent teachers. Given this information, the wage difference is best explained by:

Question

Quizplus · Accepted Answer

The wage difference is best explained by differences in human capital, as Rob has more years of experience at the college, which likely contributes to his higher salary compared to Nasrin.

A Small College Employs Two Economists