Higher Paid Jobs Vs. Lower Paid Jobs

Higher Paid Jobs Vs. Lower Paid Jobs

Using the laws of demand and supply, we can now explain why an

economist is paid more than a labourer, or a sales assistant or

warehouse personnel. Wage rates will be higher on average:

If the job requires special talents, qualifications and experience;

nearly all workers could become machine minders or refuse collectors,

so the supply of these workers is very high. Very few workers have the

right talents, qualifications and experience to become directors of

companies, so the supply of these workers is very small. For example,

if there is shortage of supply of economists then this will result in

a rise in wages. Workers do not have the same education, training and

ability. E.g. an economist is a more skilled worker than a sales

assistant. If both workers were paid the same amount, very few people

would be willing to undertake the many years of studying that are

required to become an economist. Because the training period for

certain jobs is so long the supply of these particular worker may be

very low and as a result there wages maybe very high. People with

skills that are in very short supply relative to demand for those

skills will tend to be offered very high wages.

Sometimes workers work for less than they could earn simply because

they do not know about better paid jobs elsewhere. Lack of information

about jobs id one reason for difference in earnings. Certain jobs, for

example, nursing, are thought by some people to give a lot of jobs

satisfaction and some people maybe prepared to do them without very

high pay.

If the job is dangerous, unpleasant, or results in long hours of work.

Few workers will want to work at the same wage as in safer or more

pleasant jobs. So, again, the lower supply will push up wages.If the

demand for the product that the worker makes is high, thus causing a

high demand for workers in the industry. For instance, workers in the

plumbing industry are paid more than shipyard workers.