Question

Alternative explanations of wage disparities

Suppose that a labor economist finds that one of her research subjects has earned significantly higher wages throughout his lifetime than would be predicted by standard measured variables. The economist also notes that each of the subject's positions was found through connections at his family's exclusive country club.

Which one of the following most likely explains this person's unusually high earnings?

A. Effort
B. Efficiency wages
C. Chance
D. Compensating differentials

Answer 1

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.