a. Intrinsic Differences
b. Acquired Differences
c. Compensating Differentials
c. Can Differentials Be Eliminated?
2. Economic Rent
a. How Much of Factor Earnings Is Rent?
b. Various Perspectives on Economic Rent
3. A Final Word
F. Summary
- 13.1 The Demand for Factors LO 1
- 13.2 The Supply of Factors LO 2
- 13.3 Factor Markets in Action LO 3, 4
G. Key Concepts
H. Study Exercises - Fill-in-the-Blank
- Review
- Problems
- 14 Labour Markets and Income Inequality
A. Chapter Outline
B. Learning Objectives (LO)
C. 14.1 Wage Differentials - Wage Differentials in Competitive Labour Markets
a. 1. Working Conditions
b. 2. Inherited Skills
c. 3. Human Capital
a. Formal Education
b. On-the-Job Training