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Janet Yellen, the former Chair of the Federal Reserve, is married to George A. Akerlof, an economist

Question

1. Janet Yellen, the former Chair of the Federal Reserve, is married to George A. Akerlof, an economist

who received the Nobel Prize in Economics. When they hired babysitters in the 1980s, they decided to pay wages that were higher than the going wage babysitters were earning in their local community. Even though they could have hired babysitters at a lower wage, they chose to pay more. What economic reasons are there to explain this decision to pay the higher wage?