Differences in Wage Levels

There are a number of factors which result in differences in wage rates in competitive markets these include:

Different skill levels – occupations which need higher levels of skill / academic qualifications generally pay more

Differences in labour productivity and revenue production – some workers are more efficient than others so produce more therefore they should earn more

Workers are often paid more if their job is risky or involves working antisocial hours

Trade unions can influence wage levels in some markets

Generally in markets where supply of labour is limited due to specific skills, qualifications or abilities than higher wages are demanded