Monday, September 02, 2024

How meaningful jobs may contribute to the gender wage gap

Great post from Michael Cameron. He is a Professor of Economics at the University of Waikato in New Zealand.

He uses supply and demand to explain how this works. For example 

"When a job has attractive non-monetary characteristics, then more people will be willing to do that job. This leads to a higher supply of labour for that job, which leads to lower equilibrium wages."

Also see his post Meaningful jobs and compensating differentials.

Usually a "compensating wage differential" is when a worker gets paid more for doing unpleasant or dangerous work. That is necessary to get enough people to do those jobs. But in this case getting to do a "meaningful job" is compensation for getting paid less. 

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