John and Mark hold equivalent secretarial jobs,but John,who makes 20 percent more than Mark,is employed by a manufacturing firm while Mark is employed by a department store.Based on this information,which of the following best explains this pay differential?
A)interindustry wage differentials
B)differences in human capital intensity
C)merit exception of the Equal Pay Act of 1963
D)John's stronger negotiation skills

Question

Quizplus · Accepted Answer

The pay differential is likely due to interindustry wage differentials, meaning that wages for similar jobs can vary across different industries or sectors. Manufacturing firms may pay higher wages than department stores for equivalent positions. The other options (B, C, D) do not seem to adequately explain the situation.

John and Mark Hold Equivalent Secretarial Jobs,but John,who Makes 20