The reason for the wage difference is Hanna has less human capital than Metta. (option A).
Wage is the total amount of money that is paid to labor for the services rendered in the production process.
The wage paid to labor differs for different reasons. One of the reasons for a difference in wage is human capital. The more educated or more trained a person is, the higher the human capital is. The higher the human capital, the higher the wage that is paid.
Another reason for wage differences is union. The presence of a union in the labor market increases the bargaining ability of labor. Thus, if a worker belongs to a union, it is expected that her wages would be higher when compared with the wage of a person that does not belong to a union.
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