Question

Question- Let’s investigate the relationship between age (AGE) and income (INCOME) for a random sample of people between the ages of 25 and 65 who have a bachelor's degree but no higher degree. (NOTE: Age is recorded at the end of his last birthday.)

Part (a)-Give some reasons why older people in this population might earn more than younger people. Give some reasons that younger people might earn more than older people.

Answer 1

In the corporate world, the salary of the person increases as the experience of that person increases. When a person works for many years, the skillsets are earned and learned.

As skillsets increases, the salary also increases. This is the reason that old people earn more than younger people.

Some reasons of younger people earning more than older people can be that some younger people have extraordinary skillset an talent and in that case, companies hire them at a higher salary than others. There are some extraordinary cases in any organization.