The following figure shows the market for lowskilled labor.

The value of marginal product of high-skilled workers is $16 an hour greater than that of lowskilled workers at each quantity of labor. The cost of acquiring human capital adds $12 an hour to the wage that must be offered to attract high-skilled labor.
Compare the equilibrium wage rates of lowskilled labor and high-skilled labor. Explain why the difference between these wage rates equals the cost of acquiring human capital.
Use the following information to work Problems 13 and 14.
In 2010, 828,000 Americans had full-time management jobs that paid an average of $96,450 a year while 4.3 million Americans had full-time retail sales jobs that paid an average of $20,670 a year. Managers require a high school certificate while retail sales people don€™t but they undergo training.

Transcribed Image Text:

20 12 12 4 4 Labor (thousands of hours per day)