BUS409 – Week 2 Discussion – Inter-Industry Wage Differentials

BUS 409

Part 1:

Week 2 Discussion – Inter-Industry Wage Differentials

Respond to the following:

Workers performing similar work are paid more in some industries than others. Explain why this is so.

Be sure to include examples and support your post with specific references to your text (Chapter 2) or independent research you’ve conducted.

Part 2:

Post at least one substantive comment to student’s post (Shaina S.)

Hello class,

I do know that some employers pay employees doing the same role or similar roles different. This is because the employee has higher levels of knowledge, skills and abilities that contribute to company profitability, which, in turn, is associated with higher wages. Basically, based on experience/seniority. This is true of my employer. We have employees who have been here for 10 years and do the same work as new hires but are paid more based on loyalty with the company, merit increases over time and also skill level. It is not always the ideal pay scale approach for those looking to obtain higher wages but that is how the industry wage works. Some employers will even hire in at a higher rate to attract protentional workers and influence them to apply. Both tactics may not also seem fair, but they are often practiced. 

Another example would be geographic differentials. The cost of living varies from state to state which can determine how an employer pays, based on location. I work remotely and have been since COVID. Right after the pandemic hit, I was able to relocate from Michigan to Georgia. Housing costs are way more expensive in Georgia compared to Michigan. If my employer took into consideration costs of living, I would be paid higher than an employee who resides in Michigan.