In a free market economy, no single wage level applies to all workers. In general, wage differentials are determined by the fact that we have many labor markets, each with its own supply and demand and equilibrium wage.
Each worker in a specific labor market has certain ability and expends a degree of effort commensurate with their ability and work ethic. Other factors of production make American workers more productive because they have generous supplies of machinery, natural resources, and technical expertise. Therefore, they earn higher wages. Some workers have a superior education, training, and experience.
