Wage differentials between occupations can be explained by all of the following except
A)the fact that some occupations require higher levels of human capital than others.
B)the fact that some occupations are more desirable than others.
C)the market power of different employers.
D)the relative differences between demand and supply in various occupations.

Question

Quizplus · Accepted Answer

While factors such as levels of human capital, desirability, demand and supply all play a role in determining wage differentials, the market power of different employers is not a significant factor in explaining wage differentials.

Wage Differentials Between Occupations Can Be Explained by All of the Following