Wage differences that cannot be explained by the number of years of training are likely to be the result of factors associated with which of the following
A)demand, but not supply
B)supply, but not demand
C)compensating differentials
D)conditions of regulated markets

Question

Quizplus · Accepted Answer

Compensating differentials refer to differences in wage rates resulting from differences in working conditions, job security, and other factors that may affect the desirability of a particular job. These differentials may lead to wage differences that cannot be explained by the number of years of training. Factors associated with demand or supply may also affect wages, but these would likely be reflected in the number of years of training required for the job. Conditions of regulated markets are not necessarily related to wage differences based on training or other factors.

Wage Differences That Cannot Be Explained by the Number of Years