What Factors Explain Why High-Skilled Workers Are Paid More Than

question 229

Essay

What factors explain why high-skilled workers are paid more than low-skilled workers?

---

Definitions:

Compound Rate

The rate at which interest is earned on both the initial principal and the accumulated interest from previous periods.

Savings Account

An account in a bank or financial institution where the main amount is safe and earns a small amount of interest.

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Future Value

The value of an investment at a specified point in the future, accounting for factors like interest rates and compounding.