Employees with less experience tend to earn less than employees with more experience, because

A) experience is a compensating differential.
B) experience on the job increases an employee's human capital.
C) it is only fair that a more-experienced employee be paid more than a less-experienced employee.
D) the government requires that more-experienced employees be paid more than less-experienced employees.

Question

Anecia Woolcock · Accepted Answer

Final Answer : B, Explanation :  Experience on the job increases an employee's human capital, making them more valuable to an employer due to their enhanced skills, knowledge, and capabilities. This increased value typically results in higher earnings.

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