Question : The concept of "skill premium" refers to:
Option 1: The difference in wages between skilled and unskilled workers
Option 2: The cost of acquiring new skills
Option 3: The level of skill required for a particular job
Option 4: The market demand for skilled workers
Correct Answer: The difference in wages between skilled and unskilled workers
Solution : The correct answer is (a) The difference in wages between skilled and unskilled workers.
The skill premium is the additional wage or earnings that individuals with higher levels of skills and qualifications receive compared to those with lower levels of skills or qualifications. It represents the economic reward or premium that is associated with possessing valuable and in-demand skills in the labor market.
In general, individuals who possess higher levels of education, training, and specialized skills tend to earn higher wages than those with lower levels of skills. The skill premium reflects the higher productivity and value that skilled workers bring to employers, resulting in higher compensation.
The skill premium can vary across industries, occupations, and countries, depending on factors such as supply and demand dynamics, the level of skill required for specific jobs, technological advancements, and labor market conditions.
Question : The "skill gap" refers to:
Option 2: The disparity in educational attainment across different regions
Option 3: The shortage of workers with specific skills in the labor market
Option 4: The effect of technological advancements on job opportunities
Question : The term "skill mismatch" refers to:
Option 2: The disparity in education levels across different regions
Option 3: The mismatch between the skills demanded by employers and those possessed by workers
Option 4: The difference in productivity levels between industries
Question : The concept of "skill gap" refers to:
Option 1: The difference between the skills possessed by workers and the skills required by employers
Option 2: The difference in wages between different occupations
Option 3: The difference in employment rates between urban and rural areas
Option 4: The difference in labor productivity between different sectors
Question : The "skill-biased technological change" refers to:
Option 1: The increase in demand for skilled workers due to technological advancements
Option 2: The decline in demand for skilled workers due to technological advancements
Option 3: The impact of government regulations on technological progress
Option 4: The effect of globalization on the labor market
Question : The term "labor market flexibility" refers to:
Option 1: The ability of workers to switch jobs easily.
Option 2: The ease of hiring and firing employees.
Option 3: The availability of job opportunities in the market.
Option 4: The level of wages and benefits in the labor market.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile