A small university employs two economists.Rob has been employed by the university for 15 years,and Nasrin has been employed for 1 year.Rob's salary is significantly higher than Nasrin's,although both have their doctoral degrees in economics.Each professor averages one publication per year,and both are excellent teachers.Given this information,the wage difference is BEST explained by:

Question

Quizplus · Accepted Answer

The wage difference between Rob and Nasrin can be explained by differences in human capital, as Rob has significantly more experience than Nasrin. This can include skills, knowledge, and experience that are acquired through job experience and education. Since Rob has been employed by the university for 15 years, he has had more time to develop his human capital, which justifies his higher salary compared to Nasrin.

A Small University Employs Two Economists