Actual wage differentials can be partially explained by which factor(s)? I.differences in talent
II.different amounts of human capital
III.compensating differentials
A)I only
B)I and II only
C)III only
D)I,II,and III

Question

Quizplus · Accepted Answer

Actual wage differentials can be explained by differences in talent, different amounts of human capital, and compensating differentials. Differences in talent and human capital can lead to variations in productivity, which in turn can affect wages. Compensating differentials refer to wage differences required to attract employees to jobs with varying levels of desirability or risk.

Actual Wage Differentials Can Be Partially Explained by Which Factor(s)