Kim is a black 21-year-old female,and Jackie is a black 41-year-old female.Both Kim and Jackie are finance majors,and they graduated from the same college with the same GPA - Kim in 2003 and Jackie in 1983.Kim and Jackie are both financial advisers at the same mutual fund firm.Kim earns $45,000 a year,and Jackie earns $90,000 a year.Select the best explanation for this wage difference.

Question

Quizplus · Accepted Answer

Based on the information provided, Kim and Jackie have the same level of human capital (same major and GPA). Therefore, the most likely explanation for the wage difference is that Jackie has more work experience and thus more seniority within the company. Age or discrimination based on age are not factors supported by the information given.

Kim Is a Black 21-Year-Old Female,and Jackie Is a Black