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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