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Business, 05.05.2020 17:42 Kemosdasavage
Which of the following statements is consistent with the predictions of the Roy model? When a profession has a compressed wage schedule, this induces relatively lower-skilled workers to select into the profession at higher rates. When high- and low- skilled workers in a profession are compensated more similarly to one another, lower-skilled workers experience a higher penalty for being low-skilled. Professions that have less compressed wage schedules will generally experience higher shortages in worker supply. It is not possible to maintain a long-term equilibrium in a profession in which high- and low-skilled workers in that profession are compensated similarly.
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Which of the following statements is consistent with the predictions of the Roy model? When a profes...
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