What can we find in empirical research of wage differentials
A)Effort and ability are not likely to contribute to large differences in wages in the Canadian economy.
B)Economists typically find that measurable factors explain less than half of the variation in wages.
C)Economists typically find few factors that are not explicitly measurable.
D)Unmeasurable influences on wage differences are found to be quite small.

Question

Quizplus · Accepted Answer

Empirical research on wage differentials has found that measurable factors (such as education, experience, and job characteristics) explain less than half of the variation in wages. This suggests that factors such as discrimination, social networks, and unmeasurable individual characteristics may also contribute to wage differences.

What Can We Find in Empirical Research of Wage Differentials