Consider this quote from an article in the Wall Street Journal: "The stock of educated workers isn't increasing fast enough to keep up with rising demand....Employers are paying the typical four-year college graduate [without graduate school] 75% more than they pay high-school grads.Twenty-five years ago, they were paying 40% more.Employers insist on ever better-educated, skilled workers."
Source: David Wessel, "Lack of Well-Educated Workers Has Lots of Roots, No Quick Fix," Wall Street Journal, April 19, 2007, Page A2.
Which of the following best explains the rapid increase in the wage differential between college graduates and high school graduates?

Question

Quizplus · Accepted Answer

The quote states that the demand for college-educated workers is increasing faster than the supply of such workers. This is shown by the fact that employers are paying college graduates 75% more than high school graduates, up from 40% 25 years ago. This suggests that employers are willing to pay more for college-educated workers because there aren't enough of them to meet their needs, leading to a wage differential between college and high school graduates.

Consider This Quote from an Article in the Wall Street