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Some Take Issue with the Human Capital Argument That Employers

question 108

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Some take issue with the human capital argument that employers pay more for college graduates because firms recognize the value of human capital.What are two alternative explanations for why college grads receive higher pay?


Definitions:

Written Contract

is a legally binding agreement that has been expressed in textual form, detailing the terms and conditions between parties.

Unconscionability Rule

A legal principle that prevents the enforcement of contracts or terms that are unjust, excessively oppressive, or grossly unfair to one party.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize laws across the states.

Sale of Goods

A commercial transaction in which a seller transfers ownership of tangible personal property to a buyer for a price.

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