Workers & Wages
Microeconomic Decision Makers
Workers do not pick jobs on pay alone. The syllabus splits the influences on an individual's choice of occupation into factors and non-wage factors.
| Type of factor | Examples |
|---|---|
| Wage factors | Basic pay, overtime rates, bonuses, commission, pay rises linked to inflation |
| Non-wage factors | Holiday entitlement, pension, healthcare and other fringe benefits, job security, working hours, training and promotion prospects, location, prestige and status, the working environment |
A job with a lower wage but generous non-wage benefits (long holidays, flexible hours, a good pension) can still attract many applicants. A high-paying job with long hours, dangerous conditions or a remote location may struggle to fill posts, which is why such jobs often pay a , extra pay to make up for the unattractive features.
Exam tip
Develop each reason for choosing a job
A question on why people choose an occupation, or why fewer now do, gives one mark for each of two reasons and the rest for developing them, so pair every factor with its effect. High pay raises living standards and often reflects scarce skills; job security, a good pension, pleasant working conditions, status and job satisfaction are the non-wage reasons. The specimen mark scheme sets the reverse case for 6 marks, why fewer people become teachers, crediting pay that has fallen behind other jobs, poor conditions (long hours, large classes, paperwork) and longer or costlier training.