What are some reasons for differences in pay between different groups of people that are not...

What are some reasons for differences in pay between different groups of people that are not due to outright discrimination at the employment level? For example, why do some people choose certain professions, and is that decision actually separate from discrimination at some level?
1. Is it in our interest as a society to reduce wage gaps? Why or why not?

Expert Solution

The Differences in pay between groups of people based on creative and effective working, as a person choose his profession by its passion in it. Different wage are given according to the different efficiency of people to work. The wage offers by institution are differ from eachother and it will be affected by Human capital and the working condition of people as working condition makes a big difference on the gap of wage. Institution Ability to pay gives a more gap to the wage of different people.

A)Yes, it is in our interest as a society to reduce wage gaps by distributing fair wage according to their efficiency to work. The Reduction in wage gap gives more higher standard of living to the people and also promotes social welfare by distributing equal or fair wage.

Rahul Sunny answered 2 years ago

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