Which of the following is NOT an important feature of the labor market that may give rise to differences in wages across workers?

Question

Quizplus · Accepted Answer

Differences in physical capital are not an important feature of the labor market that may give rise to differences in wages across workers. Instead, differences in human capital, compensating wages, and the nature and extent of discrimination in the job market are important factors that affect wage differentials among workers. Human capital refers to the knowledge, skills, and abilities that workers possess, which can be acquired through education, training, and work experience. Compensating wages refer to the higher wages that workers receive to compensate for undesirable working conditions or job characteristics, such as dangerous or dirty work. Discrimination in the job market can lead to differential treatment of workers based on their race, gender, ethnicity, or other characteristics, resulting in lower wages for some groups.

Which of the Following Is NOT an Important Feature of the Labor