Wage differentials refer to the differences in wages or earnings between different jobs, occupations, or individuals
Jobs with higher demand and lower supply tend to have lower wages.
False
Higher-skilled jobs tend to have lower wages compared to lower-skilled jobs.
False
Jobs with higher demand and lower supply have higher wages.
True
Individuals with specialized training earn higher wages because they are more productive.
True
Specialized skills increase an employee's market value and potential salary.
True
Wage differentials refer to the differences in wages or earnings between different jobs, occupations, or individuals
Jobs with higher demand and lower supply tend to have higher wages
Discrimination can lead to unfair wage differences.
True
Why are employers willing to pay higher salaries to workers with more education and training?
Increased productivity and contribution
Match the factor with its effect on wage differentials:
Occupational Choice ↔️ Certain occupations have higher wages
Demand and Supply ↔️ High demand, low supply increases wages
Education and Training ↔️ More education leads to higher wages
Discrimination ↔️ Unfair wage differences occur
How does discrimination affect wage differentials?
Unfair wage differences occur
Discrimination can take various forms, such as gender or racial discrimination
What do wage differentials refer to in the labor market?
Differences in wages
Union membership typically leads to higher wages for workers.
True
Why do riskier or less desirable jobs often have higher wages?
Compensation for discomfort
Employees with more relevant work experience are generally more valuable
The occupation an individual chooses can significantly impact their earning potential
What are the factors that influence an individual's occupational choice?
Skills, interests, education, demand
When there is low demand and high supply of workers, wages decrease
Studies have shown that women often earn lower wages than men in the same occupations
Order the factors influencing geographical wage differentials from most to least significant:
1️⃣ Cost of Living
2️⃣ Demand and Supply
3️⃣ Amenities and Infrastructure
Wage differentials are solely determined by skill level and education.
False
More education and training lead to higher wages
The primary factors contributing to wage differentials include skill level, education and training, demand and supply, working conditions, union membership, and discrimination
Higher-skilled jobs tend to have higher wages
Higher-skilled jobs tend to have higher wages
Experience and skills contribute to wage differentials by making employees more valuable
Wage differentials refer to the differences in wages or earnings between different jobs, occupations, or individuals
More education and training lead to higher wages.
True
One of the key factors contributing to wage differentials is education and training
Why does a senior project manager with ten years of experience earn more than a junior project manager with two years of experience?
Increased value of experience
What happens to wages when there is high demand and low supply of workers?
Wages increase
Discrimination can lead to unfair wage differences even when workers have comparable qualifications.
True
Why do jobs with higher demand and lower supply have higher wages?
Competition among employers
More education and training lead to higher wages as employers value enhanced knowledge
Why are employers willing to pay higher salaries to workers with education and training?
Increased productivity
Match the factor with its effect on wage differentials:
Occupational Choice ↔️ Specialized skills lead to higher wages