Wage differentials occur for all the following reasons except
A) homogeneous workers.
B) labor market imperfections.
C) noncompeting groups of workers.
D) compensating differences to offset nonmonetary differences in jobs.

Question

Quizplus · Accepted Answer

Wage differentials occur for a variety of reasons, including labor market imperfections, noncompeting groups of workers, and compensating differences to offset nonmonetary differences in jobs. However, they do not occur due to homogeneous workers, as in a perfectly competitive labor market, all workers with the same level of skills and experience should receive the same wage.

Wage Differentials Occur for All the Following Reasons Except