Reasons for differences in reward for labour or why workers earn different salaries.

Reasons for differences in reward for labour or why workers earn different salaries.

Some of the reasons are;

1. Period Of Training: Some workers spend more years to acquire their training than others and therefore, they are rewarded more than their counterparts. For instance, medical doctors and engineers spend more years during their training than typists and clerical clerks.

2. The Amount Spent In The Course Of Training: Those who spend more amount in the course of their training are rewarded more in line with what they spent during training.

3. The Skill Required At Work: While it requires special skill acquired through training, to be a doctor or an engineer, it does not need any special skill for one to be a messenger or a cleaner. Hence, doctors and engineers are paid far more than messengers and cleaners.

4. The Forces Of Demand And Supply: The rate at which a particular labour is demanded relative to its supply affects the reward it will attract. For instance, the demand for
unskilled labour is far lower than its supply. Therefore, its reward is low.

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7. The Societal Value For A Particular Job: The extent the society values a particular determines what the reward for such labour will be. For instance, the society places high premium on the work of clergymen than others, even though they do not produce tangible commodities, hence the work of clergymen attracts higher pay.

8. The Relationship Between Employee And Employer: This “godfatherism” a times has nothing to do with the level a productivity and the qualification of the worker.

9. The Risks Involved In A Job: Those jobs that involve more risks attract higher pay. The workers that risk their lives like pilots are paid higher than their counterparts in less dangerous works like motor driving.

10. Sex Consideration: in some societies where there is sex discrimination, men are rewarded more than their women counterparts. These male chauvinists have the erroneous belief that men work harder than women and therefore, should be paid more.

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