EC120 Lecture Notes - Lecture 8: Noise Figure, Human Capital, Efficiency Wage
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EC120 Full Course Notes
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This chapter talks about main issues and determinates to wage distribution. The wage distribution is a positively skewed long right tail. A small percent of worker earn disproportionally large shares of the rewards towards their work. Compensating differential- a difference in wages that arises to offset the nonmonetary characteristics of different jobs. E. g employer x: per hour, clean, safe work conditions. Most workers woud chose employer x without doubt. This extra wage that is payed to attract workers is called the compensating. If employer y decides not to alter working conditions, it must bay a page above /hour to be competitive in the labour market wage differential (cwd) as it is payed as compensation. Coal miners payed more than other workers with similar levels of education. 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.
