Bacoconsultants
1 Different abilities and qualifications
Workers do not all have the same education , training and ability . For example , an accountant is a more skilled worker than a cashier . If both workers were paid the same amount , very few people would be willing to undertake the many years of study necessary to become an accountant . Because the training period is so long for some jobs the supply of these particular workers may be very low and as a result their wages may be very high . For example , it takes doctors over six years to qualify to do their job . People with skills that are in very short supply relative to the demand for those skills will tend to be offered very high wages . This explains why skilled footballers like David Beckham , and actresses like Julia Roberts , are able to command huge salaries.
2 ‘ Dirty ‘ jobs and unsociable hours
Some jobs are dirty or dangerous and so workers must be paid more in order attract a supply of labor . Some people have to work nights or other unsociable hours and may be paid more to compensate for this .
3 Satisfaction
Certain jobs , for example , nursing , are thought by some people to give a lot of job satisfaction and some people may be prepared to do them without very high pay .
4 Lack of information about jobs and 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 is one reason for differences in earnings .
5 Immobility
People may earn different amounts because some workers may not wish to leave their families and friends in order to move to a better – paid job else where . At the same time , other workers would like to be able to move to a better – paid job , but may not be able to do this because they cannot afford housing in the new area . The ease with which workers can move between jobs and different parts of the country is known as labor force mobility .
If workers are very mobile , they will move to the jobs that offer them the most pay , and they will also move from places with high unemployment to areas with job vacancies . High labor mobility or willingness to move can help reduce differences in unemployment and wage rates in different parts of the country .
6 Fringe benefits
Some jobs may offer lower wages than others because they offer more perks , such as company cars , free life insurance , cheap travel . However , it is the higher – paid jobs that tend to offer the most perks