Answer to Question #25911 in Macroeconomics for Jimmy Vo
A recent study of the determinants of wages for clerical staff at a state university found that years of schooling, years of experience, age and job characteristics only ecplained about one-half of the difference in wages. Describe other factors that may be important in explaining wages differences for clerical staff.
The other important factors of the difference in wages are:1) Supply and Demand of Labor Any job is worth what the marketplace will bear.
2) Geographic Location Levels of employment/unemployment do not affect all regions of the nation equally.
3) Employment Setting There are often unique circumstances that drive salary-related decision-making in different settings.
4) Compensation Philosophy Some employers are committed to a philosophy of paying their employees above industry or area standards in order to attract and retain the very best pool of skilled workers available.
5) Profitability of the Organization Employees working for a highly profitable business have a greater chance of receiving higher wages than those working for a less profitable enterprise.
6) Employment Stability We all want the security of knowing that we will have our job as long as we want it.
7) Gender Difference Although great strides have been made in assuring "equal pay for equal work," on the whole, women continue to receive lower pay than men.