Deep Springs College is a small college in California with fewer than 50 students at any given time. The college employs two professors to teach liberal arts courses. Edwin has been employed by the college for 15 years, and Nabil has been employed for 1 year. Edwin's salary is significantly higher than Nabil's, although both have doctoral degrees in English literature. Each professor averages one publication per year, and both are excellent teachers. Given this information, the wage difference is BEST explained by:
A)compensating differentials.
B)differences in human capital.
C)discrimination.
D)differences in talent.

Question

Quizplus · Accepted Answer

The wage difference is best explained by differences in human capital, as Edwin has significantly more experience (15 years vs. 1 year) at the college, which likely contributes to his higher salary despite similar educational backgrounds and productivity.

Deep Springs College Is a Small College in California with Fewer