It is in Australia, like every other economy in the world, that wages are not uniform for every industry, occupation or job. It is due to a variety of factors that wage outcomes differ across the nation, with the price of each labour input being valued differently according to interaction of the supply and demand curves in the market. Wages are the monetary reward each individual receives in return for their efforts in the production process. Historically, the industrial relations framework Australia adopted had a strong emphasis on wages all being equal for equal effort. However, realistically, wages, especially within the contemporary economic setting, differ not only between occupations but also within occupations.
It is between occupations …show more content…
If an occupation has high mobility, employers would not have to raise wage rates as high as supply for the occupation is in excess. If there is a restriction in occupation mobility within an industry, wage rates are higher as there is a shortage in the supply of labour. For example the qualifications of a neurosurgeon include a bachelor of medical surgery and further post graduate masters (in total 12 years’ worth of studying), therefore being a very long and tedious processes in which would reduce occupational mobility. As a result Neurosurgeons are compensated with a very high weekly income of $5577 as this difficult process would defer any individual from perusing this line of work, reducing supply of labour in this industry. Whereas qualifications to become a nurse is only a 3-4 year degree in the bachelor of nursing in which dramatically increases the occupational mobility of his industry as the relatively low levels needed to qualify as a nurse would mean higher supply of nurses in the labour market. As a result, their average weekly income is $1499, just under a quarter of a neurosurgeon’s salary, demonstrating how occupational mobility impacts wage …show more content…
Germany’s Gini coefficient is 0.27 and its HDI is 0.911, whereas Haiti has a Gini coefficient of 0.59 and its HDI is 0.47. Therefore an economy with more equitable distribution of income would have a higher living standard.
Equitable distribution of income could lead to no discrimination within that economy and hence there would be no social hierarchy status as everyone is the same. Individuals in the economy would demand similar or the same goods and services as everyone have same income. Therefore the specialisation in those particular goods would mean increased efficiency in the economy whereby there is no longer a need to produce an excessive range of goods and services which could potentially waste scarce resources. Social welfare benefits would decrease as the earning bracket of low income earners is eliminated. For example countries with discrepancies in their distribution of income thence the budget is proportionally strained as more people require financial aid. If everyone is on uniform wages, this could eliminate the need to provide welfare
It is between occupations …show more content…
If an occupation has high mobility, employers would not have to raise wage rates as high as supply for the occupation is in excess. If there is a restriction in occupation mobility within an industry, wage rates are higher as there is a shortage in the supply of labour. For example the qualifications of a neurosurgeon include a bachelor of medical surgery and further post graduate masters (in total 12 years’ worth of studying), therefore being a very long and tedious processes in which would reduce occupational mobility. As a result Neurosurgeons are compensated with a very high weekly income of $5577 as this difficult process would defer any individual from perusing this line of work, reducing supply of labour in this industry. Whereas qualifications to become a nurse is only a 3-4 year degree in the bachelor of nursing in which dramatically increases the occupational mobility of his industry as the relatively low levels needed to qualify as a nurse would mean higher supply of nurses in the labour market. As a result, their average weekly income is $1499, just under a quarter of a neurosurgeon’s salary, demonstrating how occupational mobility impacts wage …show more content…
Germany’s Gini coefficient is 0.27 and its HDI is 0.911, whereas Haiti has a Gini coefficient of 0.59 and its HDI is 0.47. Therefore an economy with more equitable distribution of income would have a higher living standard.
Equitable distribution of income could lead to no discrimination within that economy and hence there would be no social hierarchy status as everyone is the same. Individuals in the economy would demand similar or the same goods and services as everyone have same income. Therefore the specialisation in those particular goods would mean increased efficiency in the economy whereby there is no longer a need to produce an excessive range of goods and services which could potentially waste scarce resources. Social welfare benefits would decrease as the earning bracket of low income earners is eliminated. For example countries with discrepancies in their distribution of income thence the budget is proportionally strained as more people require financial aid. If everyone is on uniform wages, this could eliminate the need to provide welfare