Question

Tia and Eric went to trade school at the same time. Each graduated with an associate's degree. They have received similar performance evaluations. Eric's employer is not a good business manager, and the sales manager lost a major deal. Because of the decrease in profits, the employees did not receive raises last year. Tia's employer is a savvy business manager and the sales manager is experienced and works hard. If Tia has higher earnings than Eric, the difference is most likely a function of

Answer 1

differences in human capital

Step-by-step explanation:

Here are the options :

differences in human capital

differences in signaling

discrimination

chance

Human capital is an example of an intangible asset. It is the economic value attached to labours' skills and expertise.

Qualities of human capital includes

• Education.
• on-the-job training.
• Hard work
• experience
• Mental and emotional well-being.
• People management.
• Communication skills.

Tia's employer has more human capital qualities when compared with Eric's employer. Tia's employer is more hardworking and experienced. Due to these skills. Tia's employer is likely to make more profit than Eric's employer. This can explain the wage differential between Tia and Eric