100%(1)1 out of 1 people found this document helpful
This preview shows page 27 - 30 out of 39 pages.
Jobs that are easy, fun, or safe will pay lower wages than jobs that are difficult, dull, or dangerous.Human CapitalDefinition of human capital: the accumulation of investments in people, such as education and on-the-job training.Workers with more human capital on average earn more than those with less human capital.Firms are willing to pay more for highly educated workers because highly educated workers have higher marginal products.Ability, Effort, and ChanceBecause of heredity and upbringing, people differ in their physical and mental attributes. This will affect their productivity level and therefore their wage.People also differ in their level of work effort. Those who work hard are more productiveand earn a higher wage.
Chance also plays a role in determining wages.An Alternative View of Education: Signaling.