Solving first four as per policy:
1. The wage differential may exist because of any of the following
reasons:
(a) Differences in productivity of labour in the two regions
(b) Availability of higher number of jobs/ opportunities in the
region where wages are high
(c) Influx of immigrants in the region where wages are low
2. Differences in wages is due to difference in the experience and
productivity of the two individuals. The admin assistant is most
likely less experienced and hence less productive and efficient
than the executive assistant!
3. Differences in wages is due to difference in the productivity of
the two individuals. While, a software developer is likely to
develop automated program to manage his tasks, the executive
assistant would do the same tasks manually.
4. Difference in wages due to Gender. These practices have their roots in the socially perceived notion that women are less productive, less efficient than men. It is also perceived that men have a longer and more productive career than women!
For each of the following wage/earning differentials, give the most likely reason for the differential and...