Wage rates may differ across workers because of differences in occupational preferences.

Question

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Different workers may have different occupational preferences, which can affect their willingness to work in certain industries or jobs. If a job is less desirable or requires more skills or training, then workers may demand higher wages to compensate for the less desirable aspects of the job. This can create variation in wage rates for workers with different preferences and skills.

Wage Rates May Differ Across Workers Because of Differences in Occupational