Wage Differentials Using the economic concepts that explain differences in wages
ID: 1184786 • Letter: W
Question
Wage Differentials Using the economic concepts that explain differences in wages, discuss any three of the following points. Post your response to each of the three points separately. Why does a chief executive earn more than a rocket scientist working for NASA? Why does a teacher earn less than a firefighter? Why does a union electrician earn less than a non-union electrician? Why does a white male earn more than a white female with the same level of education? Why does a movie actress like Angelina Jolie earn more than a movie actress from the 1940s?Explanation / Answer
A chief executive earn more than a rocket scientist working for NASA because of his higher position, efficiency and revenue generation ability for the firm.
A teacher earn less than a firefighter because a firefighter is compensated for higher risk taking.
A union electrician earn less than a non-union electrician because of trade union protection of labor rights and wages.
A white male earn more than a white female with the same level of education due to employer discrimination based on the basis of gender.
A movie actress like Angelina Jolie earn more than a movie actress from the 1940s because of the revenue generating capacity of the movie industry as a whole in present times as well as that of Angelina Jolie.
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