What do wage differences across labor markets trace to?

Question

Quizplus · Accepted Answer

Wage differences across labor markets trace to differences in labor demand and in labor supply. The demand for labor varies depending on factors such as the size, growth rate, and industry composition of the local economy, while the supply of labor varies depending on factors such as the size and demographic composition of the local population, the availability of transportation, and the local cost of living. Other factors such as differences in minimum wages, the use of technology, available resources, and union wages may also contribute to wage differences, but the primary driver is generally differences in labor demand and labor supply.

What Do Wage Differences Across Labor Markets Trace To