1. Why wages differ For each of the scenarios in the following table, indicate the most likely reason for the difference in earnings. Differences in Human Capital Scenario Two automotive technicians have the same amount of schooling and work experience, but earn different wages. The first works the day shift for an auto manufacturer factory for an annual wage of $52,000 per year, and the second works the night shift for the same company for an annual wage of $63,000 per year. An economics consulting firm hires Carlos, a recent PhD graduate in economics, and pays him an annual wage of $80,000. It also hires Jake, a recent master's degree graduate in economics, and pays him an annual wage of $63,000. Major league hockey goalies earn more than minor league hockey goalies. Compensating Differential Differences in Ability O O Labor Unions O O O

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