Question

Because the market-level salary of college graduates is much higher than that of high-school graduates, it will be more cost-effective for firms to hire high-school graduates.

a) True
b) False

Answer 1

False, it is not more cost-effective for firms to hire high-school graduates because the market-level salary of college graduates is higher.

Step-by-step explanation:

False, it is not more cost-effective for firms to hire high-school graduates just because the market-level salary of college graduates is higher. The wage gap between college graduates and high-school graduates has actually widened over the years.

According to the National Center for Education Statistics, the income difference between college graduates and high-school graduates has increased. In 1980, a college graduate earned about 30% more than a high school graduate with comparable job experience, but by 2014, a college graduate earned about 66% more than a comparable high school graduate.

Therefore, hiring college graduates can be seen as a worthwhile investment for firms, as they are more likely to have higher skills and qualifications that justify their higher salaries.