Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 19 - Part VI - Earnings and Discrimination - Questions for Review - Page 410: 3

Answer

The education might raise a worker's wages without increasing the productivity by introducing new technology to the worker.

Work Step by Step

If a worker is exposed to old technology, and the technology is going to be obsolete in a few years, the technology learned is useless and keeps the worker in a low-paying job. However, if the worker is exposed to new technology, the worker will be more in demand and be more likely to be paid a higher wage.
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