Wage differentials across individual workers are determined in part by:
A)Effort.
B)Productivity.
C)Social capital.
D)Luck.
E)All of the above.

Question

Quizplus · Accepted Answer

All of the above factors can play a role in determining wage differentials. Effort and productivity are closely related, as workers who put in more effort and are more productive are often rewarded with higher wages. Social capital, or a worker's connections and networks, can also play a role in determining wages as those with more connections may be more likely to secure higher paying jobs. Luck can also come into play, such as a worker being in the right place at the right time for a high-paying job opportunity. Overall, a combination of these factors and others can lead to wage differentials across individual workers.

Wage Differentials Across Individual Workers Are Determined in Part By