The lack of job information for workers would be an example of what 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 suggest that wage differentials exist due to a lack of perfect competition and information in the labor market, leading to some workers being paid more than others for similar work. In this case, the lack of job information for workers hinders their ability to negotiate for higher wages, leading to disparities among workers.

The Lack of Job Information for Workers Would Be an Example