Microeconomic Decision Makers · 4 question types
Past paper frequency (2018 to 2024)
This topic accounts for approximately 8% of your exam marks.
Wage determinants, minimum wage effects, and trade union impact appear regularly in Section B; typically 6 to 10 marks.
Workers do not pick jobs on wages alone. The IGCSE syllabus expects candidates to mention non-wage factors as part of the labour-supply story.
| Type of factor | Examples |
|---|---|
| Wage factors | Basic pay, overtime rates, bonuses, commission, pay rises linked to inflation |
| Non-wage factors | Holiday entitlement, pension, healthcare benefits, training opportunities, job security, working hours, fringe benefits (gym, car, free meals), location, prestige and status, working environment |
A job with a lower wage but generous non-wage benefits (long holidays, flexible working, good pension) can still attract many applicants. Conversely, a high-paying job with long hours, dangerous conditions, and remote location may struggle to fill posts; that is why such jobs often pay a compensating differential (extra pay to make up for the unattractive features).