Jo and Flo are identical twins who attended grammar school through high school together.Jo got a job after high school,and Flo got a job after graduating from college.Jo earns $36,000 a year,and Flo earns $69,000 a year.Select the best explanation for this wage difference.
A) Jo has less human capital than Flo.
B) Flo has less human capital than Jo.
C) Jo has received a compensating differential
D) Flo has received a compensating differential.

Question

Quizplus · Accepted Answer

Flo likely earns more because she has more human capital, which includes education and skills acquired through college, leading to higher earning potential compared to Jo, who started working right after high school.

Jo and Flo Are Identical Twins Who Attended Grammar School