Compare two workers or groups by linking qualifications, productivity, scarcity, bargaining strength, discrimination and sector conditions to their relative wages.
The food processing, tourism, and education industries all contribute significantly to the government budget for the US state of Wisconsin. The contribution of the education industry is higher than that of other industries due to the higher wages earned in education. This industry also contributes to the population growth of the state. This not only creates private benefits but also external benefits.
Analyse the reasons why workers employed in education may earn more than workers employed in other industries.
Coherent analysis which might include:
Higher demand for education workers (1) due to higher demand for education than other industries (1) demand for education workers is derived demand (1).
Lower supply (1) less people available to work in education (1) e.g. not many qualified people want to become teachers / lecturers (1).
Higher bargaining strengths (1) stronger trade unions (1) e.g. teachers' union is very strong.
Less discrimination (1) everyone is paid according to their level of productivity (1) for example, female teachers less discriminated than in other industries (1).
More favourable government policy for workers in education / government spends more on education (1) higher wages set by the government for workers in education (1) as education is essential for the economy / society (1). More skilled (1) long-term training required (1) higher productivity (1).
tertiary workers earn more (1) more value added (1).
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