Wage Differentials

Where to start

Start with the Differences in wages mind map. It looks at wage differences within and between occupations and includes worker productivity. Use it to organize the main ideas before moving to a more specific question about why earnings differ.

Then read the note on equal net advantage and monetary and non-monetary benefits. It describes conditions under which earnings would tend to be equal across occupations, including equal ability and mobility and equal non-monetary advantages and disadvantages.

Explore job characteristics

The Compensating Wage Differentials flashcard deck asks about the principle of compensating wage differentials and the characteristics that might receive them. It gives you questions to work through after reading the note.

There are also mind maps that include job risk among their points. Compare the job characteristics raised there with the questions in the flashcards. This can help you keep the different ideas in view as you study.

Look at differences in earnings

The Gender Gap mind map covers changes in participation among women and the ratio of female to male earnings. Another mind map on the wage gap sets out a definition, questions about whether it exists, possible causes and suggested solutions.

The Labour Market Polarisation mind map includes education, returns to education and over-education. You can use its headings to follow the ideas presented and consider how they relate to differences in earnings.

Use the resources together

The Wage differentials mind map includes wage rates and labour productivity. Compare its points with Differences in wages, then return to the flashcards and answer their questions without looking at your notes.

This topic is one section of Labour Markets in Economics. Use the resources here to study wage differentials within that unit, then make your own map to organize the ideas you want to remember.