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

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


Definitions:

Solar Panels

Devices that convert sunlight into electricity, using photovoltaic cells.

Anchoring

A psychological tendency to overemphasize the importance of the first information encountered (referred to as the "anchor") when one is making choices.

Overpriced Warranties

Service contracts sold at a price significantly higher than the expected cost of repairs, often yielding high profit margins for sellers.

Behavioral Economics

A field of economics that studies how psychological, social, cognitive, and emotional factors affect economic decisions of individuals and institutions.

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