The primary cause of __________ is increasing market rates for skills that are in short supply.

Question

Quizplus · Accepted Answer

Wage rate compression occurs when there is a narrow difference in pay between job positions that require different levels of skills and experience. This can happen when market rates for skills in short supply increase, as employers may need to raise the wages of all employees in similar job roles to retain a competitive workforce. This can create wage disparities between those in different job roles and lead to wage rate compression. Comparable worth, compensation equity, and pricing equity are not directly related to this issue.

The Primary Cause of __________ Is Increasing Market Rates for Skills