Question
Smith has been working as a forklift driver in a factory for 3 years. A new additional forklift driver was hired recently and earns higher
Smith has been working as a forklift driver in a factory for 3 years. A new additional forklift driver was hired recently and earns higher wage than Smith.
What economic reasoning explains why the new employer with the same skills, and doing the same job as Smith but with less experience compared to Smith, earn higher than Smith?
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Managerial Economics and Strategy
Authors: Jeffrey M. Perloff, James A. Brander
2nd edition
134167879, 134167872, 9780134168319 , 978-0134167879
