Wage Differentials Flashcards

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What are wage differentials?

Differences in pay between workers, jobs, or places.

It tends to raise wages in that job.

When few people have the skills, wages are higher.

Extra pay to make up for risk, unpleasant work, or unsocial hours.

Training takes time and money, so fewer workers can do them, pushing pay up.

More productive workers add more value, so firms may pay more.

They bargain for higher pay for members, which can widen gaps.

If some groups are paid less for the same work, a wage gap exists.

Demand for labour and living costs are higher, so pay can be higher.

It raises the lowest pay and can narrow gaps at the bottom.

Low wages in some areas can last, so wage gaps remain.

With little competition for workers, it may pay lower wages than elsewhere.