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At some colleges and universities, economics prof…

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Problem 3 Easy Difficulty

A basic finding of labor economics is that workers who have more experience in the labor force are paid more than workers who have less experience (holding constant the amount of formal education). Why might this be so? Some studies have also found that experience at the same job (called $\textit{job tenure}$) has an extra positive influence on wages. Explain why this might occur.


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Yi Chun Lin
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Principles of Economics

Chapter 19

Earnings and Discrimination

Related Topics

The Economics of Labor Markets

Topics for Further Study

The Real Economy in the Long Run

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Video Transcript

question three Basic fighting off lately comics is that workers who have more experiences in the labor force are paid more that workers who have less experience holding a disgusting amount of education than white might be. So so what reason is that the one with more experience they can guess. They require less training type because given the distribute, people have the same level education and one has work. One has words in McConnell's before, and the other one has not. So the one who knows how Teo make burgers, how to make French fries. We, from the point of view ofthe employees, employers. They don't have to train him right. He can just get on a job and work while the other one who doesn't have any experience, you have to get him to work and then spend time to teach him how to make the hamburgers and how tio start how to make a utter milkshakes or something. So it is more costly. Teo Hi Rose with less experience. That's why does, with experience, can earn more, more okay, And the second question is in that some studies have also found that experienced at the same job hasn't instruct positive influence on weight on wages because that s o this part we're talking about in job training. Because if you have been working in this particular job saying, making hamburgers in McDonald's, you know, you really know how to make a hamburger, so you make him burgers faster than those rookies in your in your college, So that is why they get paid more.

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