Topic labor market equilibrium learning outcome micro

Topic: Labor Market Equilibrium
Learning Outcome: Micro 17: Explain the effects of the factors of production, factor demand, and factor
supply and labor in factor markets
AACSB: Analytic Skills
25

80) Consider this quote from an article in the Wall Street Journal: ʺ The stock of educated workers isn ʹ t
increasing fast enough to keep up with rising demand . ....... Employers are paying the typical
four - year college graduate [without graduate school] 75% more than they pay high - school grads.
Twenty - five years ago, they were paying 40% more. Employers insist on ever better - educated,
skilled workers. ʺ
Source: David Wessel, ʺ Lack of Well - Educated Workers Has Lots of Roots, No Quick Fix ʺ , Wall Street
Journal, April 19, 2007, Page A2.
Which of the following best explains the rapid increase in the wage differential between college
graduates and high school graduates?
80)
Diff: 3 Page Ref: 555/555
Topic: Labor Market Equilibrium
Learning Outcome: Micro 17: Explain the effects of the factors of production, factor demand, and factor
supply and labor in factor markets
AACSB: Analytic Skills