The lack of job information for workers would be an example of which explanation for wage differentials among workers?
A) noncompeting groups
B) compensating differences
C) market imperfections
D) principal-agent problems

Question

Quizplus · Accepted Answer

Market imperfections refer to situations where workers and employers do not have perfect information or bargaining power, leading to wage differentials. The lack of job information for workers is an example of information asymmetry, which is a type of market imperfection that can lead to lower wages for workers.

The Lack of Job Information for Workers Would Be an Example