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Question 13 2 pts A new teacher often makes less than a teacher with 20 years experience because of: differences in human cap
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Answer : (a) Differences in Human Capital

Human capital is defined as the economic value of a worker's experience and skills. It is an intangible asset that include values such as education, skills, training and health, etc.

Investing in human capital is done by providing sufficient training to enhance the knowledge and productivity of the employees. So a teacher with 20 year experience should have received adequate training at proper intervals to boost his/her productivity by the institution. Those trainings would have helped the teacher develop more and more intangible qualities and it can be transferred to the students involuntarily or voluntarily. That amount of human capital will not be there in a new teacher. That is the reason why salary and benefits increase with experience and a new teacher is often paid less than some one with 20 years experience.

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