In a labor-market pooling equilibrium with high-skill and low-skill workers and where a costly educational degree is used as a signaling device, all else equal, an increase in the wage differential between high- and low-skill workers leads to
A) an increase in the required minimum share of high-skill workers.
B) a decrease in the required minimum share of high-skill workers.
C) no change in the required minimum share of high-skill workers.
D) None of the above answers are correct.
A
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Indicate whether the statement is true or false
Is wage discrimination more likely in competitive or monopolistic markets?
Technically, the Federal Reserve district banks are corporations whose stockholders are the
a. state governments in each district. b. citizens of the United States. c. Departments of Treasury and Commerce. d. member banks.
This profit-maximizing (loss-minimizing) firm is making a profit or loss of about _________.
A. $1,400
B. $225
C. $0
D. -$225