Why do some occupations and professions command more money than others?

Note: This post is not an essay but will help you brainstorm to write one.

There is great difference in the amount of money people receive in different professions. Some professions command handsome salary whereas others just pay a nominal wage. Why does this kind of inequity prevail in the corporate world? There are a number of explanations for this question and we'll explore some of them here.

1)      Lack of required number of manpower in a particular profession. The profession has good demand in the market but the supply of manpower is low. For example,   Chartered Accountant is one such profession at present. As a result, the people in that profession are paid high. This reason is based upon the “law of demand and supply” in Economics. According to this law, the things which have good demand but shortage of adequate supply are always priced higher than the market price (which is a normal price).

2)      The profession is highly sensitive  and it requires very rigorous training which is often costly as well as difficult to go through. Doctors, engineers, pilots, etc fall under this category. Without our ability to complete our task successfully we cannot become doctor, engineer, or pilot. Being capable is a result of years of expensive training in such professions.

3)      Risky jobs command more money. Because less people are willing to do the risky jobs the people who do these kinds of jobs naturally have advantage of low supply of manpower. As a result, they also command more money. Moreover, their higher amount is justifiable as they have to remain fit and alert to be able to perform their job which requires them to take better care of their health. Examples of such jobs include, welding and iron works, working in the risky factories, firefighters, and so on.

4)      Top personnel in any field command good money. For example, there are sportsmen who earn a normal salary, whereas there are top players who earn in millions. Top actors earn many times the less famous actors. Likewise, top professors, even top doctors, and all other top persons command more money in their profession than their counterparts.

5)      Jobs requiring special skills or technical expertise command more money than the jobs which can be performed without much skills or trainings. In other words, skilled manpower is more likely to earn more than the unskilled manpower.

6)      Extraordinary jobs like paintings, television program hosting, and other artistic works also command high money. The people with such gifted talents like singing, arts, anchoring, acting, earn more money. Normally, people cannot become such professionals with mere training. Therefore, the people with such talents have an advantage as well as they command more money.

If you have any other ideas please share them with us in the comments below.

Thanks.

Comments

  1. Thank you lots..the points mentioned are indeed very helpful..thnxx :)

    ReplyDelete
  2. those having short period of professional life such as for sport personalities are paid very high for their work and this is even justifiable because as their professional life exist for around only 15 years their income from those short period must support their entire retired life.

    ReplyDelete
  3. there are also jobs which require high level of sacrifices usually coming from sacrificing social life for long spans. for e.g working on big yatchs on sea for months away with families and friends.

    ReplyDelete

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