Explain Why Tractor-Trailer Truck Drivers Earn Almost Twice That of Limousine

Question

Examlex · Accepted Answer

The Answer is At first, we might expect that both occupations would have roughly equal wages, since they both require similar skills and neither requires a college degree. However, driving a tractor-trailer is one of the most dangerous occupations. Furthermore, driving a tractor-trailer generally requires spending many days away from home and is likely more unpleasant than driving a limousine. These features combine to decrease the supply of truck drivers, pushing up their wages and creating a compensating wage differential.
If the government set the wages of limousine drivers equal to truck drivers, many truck drivers would want to become limousine drivers. Trucking companies would find it difficult to hire truck drivers; there would be a shortage of drivers. Because of the higher wages, limousine companies would reduce the number of limousine drivers hired, which coupled with all the truck drivers wanting to work as limousine drivers would create a surplus of limousine drivers.

Explain Why Tractor-Trailer Truck Drivers Earn Almost Twice That of Limousine

Essay

Correct Answer:
Verified

Explain Why Tractor-Trailer Truck Drivers Earn Almost Twice That of Limousine

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified