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Re: The difference in average annual income in favor of employees who have [#permalink]
I don't get why A is the answer.

Let's say I have a college degree and can't get a good job, so I settled for an unskilled job with less salary. So this would bring down the average income of the group with a college degree. Here we're asked about the difference between the group of people who have college degrees and who don't rather than skilled and unskill jobs (the jobs which requires a degree and jobs that don't require a degree)
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Re: The difference in average annual income in favor of employees who have [#permalink]
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vir4nch wrote:
I don't get why A is the answer.

Let's say I have a college degree and can't get a good job, so I settled for an unskilled job with less salary. So this would bring down the average income of the group with a college degree. Here we're asked about the difference between the group of people who have college degrees and who don't rather than skilled and unskill jobs (the jobs which requires a degree and jobs that don't require a degree)

For a detailed explanation of why (A) is correct, feel free to check out this explanation (or this one, or this one.)

In case those don't clarify things, here are a few additional thoughts on (A).

The analysts hypothesize that increased competition for employees with college degrees drove up their income. For this to be true, we need to assume that there really was "increased competition between employers for employees with college degrees." If this "increased competition" didn't happen, the explanation would fall apart.

So how does (A) affect the analysts' explanation? Well, if (A) were true, it would seriously undermine the idea that there was "increased competition" for employees with college degrees. Basically, if there was so much competition for these employees, why would a "growing percentage" of them be unable to find jobs requiring a college degree?

Since (A) undermines a key assumption of the analysts' explanation, it's correct.

I hope that helps!
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Re: The difference in average annual income in favor of employees who have [#permalink]
GMATNinja sayantanc2k Can you please explain the reason to eliminate D. I am convinced on why A is correct and but wanted to check how to eliminate D so that I don't end up making the same mistake in other questions.
My thought process for D-
Since Advanced degree folks got much more salary than the normal degree folks so overall the average of the college degree people went up. This served as an alternate reason as to why the difference between annual income doubled.

After reading the explanations I understand A clearly weakens but still wanted to check for D too. Your help would be really appreciated.
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Re: The difference in average annual income in favor of employees who have [#permalink]
as per option E, even the non degree people can get higher salary that means supply demand for graduates is not the only reason for the higher salary. hence choice E creates doubt on occlusion then why is it incorrect.

my reasoning is that choice E doesn't clearly denies that hypothesis is incorrect and the hypothesis never said that supply demand is the ONLY reason. hence choice E can be eliminated.
is my thinking correct??
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Re: The difference in average annual income in favor of employees who have [#permalink]
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nehagoyal

You're right that they never said supply-and-demand was the only reason. However, E doesn't present an alternative reason in the first place. It just shows that not every high earner had a degree. However, that doesn't matter. This is normal in data sets, right? Sure, there are a few lucky or talented people who earn a lot without a degree. But that doesn't change our premise that ON AVERAGE, people with degrees earned more, and it does nothing to tell us WHY people with degrees earned more.
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Re: The difference in average annual income in favor of employees who have [#permalink]
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shantanu09 wrote:
GMATNinja sayantanc2k Can you please explain the reason to eliminate D. I am convinced on why A is correct and but wanted to check how to eliminate D so that I don't end up making the same mistake in other questions.

My thought process for D-

Since Advanced degree folks got much more salary than the normal degree folks so overall the average of the college degree people went up. This served as an alternate reason as to why the difference between annual income doubled.

After reading the explanations I understand A clearly weakens but still wanted to check for D too. Your help would be really appreciated.

Here's (D) again:

Quote:
From 1980 to 1990 the difference in average income between employees with advanced degrees and those with bachelor’s degrees also increased.

This is perfectly compatible with the author's explanation that "increased competition between employers for employees with college degrees drove up income for such employees." Perhaps competition for employees with bachelor's degrees went up a bit, and competition for employees with advanced degrees went up even more.

So, (D) doesn't really give us an alternate explanation -- it just provides more details that may well go along with the author's explanation.

Because (D) doesn't undermine the author's theory, we can eliminate it.

I hope that helps!
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Re: The difference in average annual income in favor of employees who have [#permalink]
A little late to the party, but hopefully I can help others see that A does in-fact slightly suggest that the difference could have doubled.

If a growing percentage of people with college degrees are taking unskilled jobs, then it isn't too big of a stretch to think that this may lead to increasing unemployment in people without college degrees (since they are losing some of their share of jobs to those with college degrees). So quite possibly, the difference has doubled due to a drastic decrease in income of non-college degree guys rather than an increase in income of those with college degrees.
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Re: The difference in average annual income in favor of employees who have [#permalink]
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