Seniority and merit are two of the largest influences on wage differentials among people holding the same job in an organization.

Question

Quizplus · Accepted Answer

Seniority refers to the duration of employment or time spent in a specific position, while merit refers to an individual's performance and skill level. Both factors can lead to wage differentials as longer-serving employees may receive higher pay due to their experience, and those with better performance may receive higher pay due to their higher productivity and value to the organization.

Seniority and Merit Are Two of the Largest Influences on Wage