Which finding have economists who study labour markets discovered
A)Chance is difficult to measure, but only about five percent of wage differences are related to chance.
B)Ability is not difficult to measure, but it is largely insignificant in explaining wage differences.
C)Work effort is difficult to measure, but it is not likely to contribute much to an explanation of wage differences.
D)Ability, effort, and chance are all likely to be significant contributors to wage differences.

Question

Quizplus · Accepted Answer

Economists have found that ability, effort, and chance are all likely to contribute to wage differences. While ability may not be difficult to measure, it is often not the most significant factor in explaining wage differences. Similarly, work effort may be difficult to measure, but it is not likely to be a major driver of wage differences. Chance may be difficult to measure, but it is estimated to account for only a small portion (around 5%) of wage differences. Therefore, the most accurate statement is that all three factors are likely to be significant contributors to wage differences.

Which Finding Have Economists Who Study Labour Markets Discovered