Why might equally competent and hard-working janitors earn more in the United States than in India?

Question

Quizplus · Accepted Answer

An hour of janitorial service raises more revenue in the United States because the U.S. firm is more productive. This is most likely due to differences in technology, capital investment, and specialization among U.S. and Indian firms, which allow U.S. firms to operate at a higher level of efficiency and generate more value per worker. As a result, U.S. firms can afford to pay higher wages to janitors, even if they are equally competent and hard-working as their Indian counterparts.

Why Might Equally Competent and Hard-Working Janitors Earn More in the United