Which statement is MOST likely an example of wage disparity due to differences in human capital?
A) Clerks at a Gap in Toronto earn more than do clerks at a Gap in Abitibi,Quebec.
B) People with graduate degrees usually have higher earnings than do people who did not graduate from high school.
C) The football coach at the University of Toronto earns more than does an economics professor.
D) Crab fishermen on the Bering Sea earn more than do clerks who sell goldfish at a pet store.

Question

Quizplus · Accepted Answer

Wage disparity due to differences in human capital usually refers to cases where people with better education or more skills earn more than those with less. Option B states that people with graduate degrees usually have higher earnings than those who did not graduate from high school, which is an example of human capital playing a role in earning disparities. The other options do not provide clear examples of differences in human capital being the reason for wage disparities.

Which Statement Is MOST Likely an Example of Wage Disparity