Complex sentence: Michael Spence began his 1973 model with a hypothetical example: suppose that there are two types of employees--good and bad--and that employers are willing to pay a higher wage to the good type than the bad type.
Split into simpler sentences: Michael Spence began his 1973 model with a hypothetical example. Suppose that there are two types of employees--good and bad--and that employers are willing to pay a higher wage to the good type than the bad type.