The difference in average annual income in favor of employees who have college degrees, compared with those who do not have such degrees, doubled between 1980 and 1990. Some analysts have hypothesized that increased competition between employers for employees with college degrees drove up income for such employees.
Which of the following, if true, most seriously undermines the explanation described above?
fact1) between 1980 and 1990, the avg annual income in favor of employees having college degrees doubled
Reason: increased competition between employers for employees
Weaken the explanation
we have to provide other explanation which can tell the real cause of the situation.
A) During the 1980s a growing percentage of college graduates, unable to find jobs requiring a college degree, took unskilled jobs.
taking unskilled jobs means less pay
example in 1980 suppose there are 100 employees 50% worked for unskilled jobs
and in 1990 suppose 20%
Skilled pay : 100
unskilled pay: 50
1980 avg income : (100)(50)/50 = 100
1990 abg income : (100)(80)/50 = 160
so its not the competition but the higher percentage of people working for skilled jobs.
B) The average age of all employees increased slightly during the 1980s.
for me its a mild weakener because increasing the age we are increasing the range or number of the college degrees employees.
C) The unemployment rate changed very little throughout the 1980s.
OFS
D) From 1980 to 1990 the difference in average income between employees with advanced degrees and those with bachelor’s degrees also increased.
OFS
E) During the 1980s there were some employees with no college degree who earned incomes comparable to the top incomes earned by employees with a college degree.
OFS
Thanks
Fiza Gupta
Fiza Gupta