1. Factors determining choice of occupation :

a. Wages or pay scale:

            If an individual gets more pay scale /salary/wages in one occupation than another then he might choose to work there. This is because pay scale is the most important factors for the choice of occupation. This is the only WAGE FACTOR.

           

b. Fringe benefits:

            If an individual gets more fringe benefits like free accommodation, free transportation, free medical facilities, free education facility for children, subsidized food etc  in one occupation than another then he might choose to work there. This is because all these factors decides the real wage of a worker.

c. Number of hours:

            If an individual gets an occupation where wage rate is same as another occupation but working hour is less than the previous job then he might choose to work there. This is because he will have more leisure time that he can spend with his family.   

                       

d. Location of his working area:

            This factors plays an important role in choosing a worker’s choice of occupation. If the work area is nearby with less pay scales too, some workers may be ready to work as they do not have to travel a long distance.

e. Opportunities for promotions / Career prospects:

             If a person has more opportunities of being promoted in one company than another, he might choose to work there. This is because of better future job prospect.

                       

f.  Job security           :

If an individual gets more secured jobs / permanent job than he might prefer to join even if the pay scale is comparatively less than the other one.

           

h. Working condition:

            If the working condition is good, safe and secure, hygienic etc then a person might be ready to work for that job then the other job where all these are not available.

i. Goodwill of the organization:

            Size of company along with goodwill also matters as an individual might prefer to work in a large organization with a good reputation as they can be benefited in different ways & of course it  good  & prestigious  matter of being a part of such organization.

 Q. Why workers in the same occupation paid differently?

Workers doing the same job within the same industry are paid differently because:

lDifferent pay agreements across the country-overtime, bonus.

lInformal economy, where there is no fixed wage policy. ( most important point )

lShortage of workers

lDifferences in the amount of experience, training, hard work & productivity. ( most important point )

lDemand for final product or service( most important point )

lLikely revenue from sale of good or service.

lWorkers in cities are paid more to meet the higher cost of living.

lIn spite of equal-opportunities women tend to earn less because their careers are interrupted by family commitments, or they suffer from sex discrimination.

lOlder workers tend to earn more because of seniority & experience.

Q. Why workers change jobs at same wages?

There are many times when a worker decides to move to another job at the same rate of pay

The reasons might be:

·         Sometimes workers move from one job to another at the same rate of pay because their working conditions are not good or acceptable to them and they prefer to change job even though they are not paid more.

·         There may be times when the worker may find problems due to extreme weather conditions or geographical factors.

·         Workers also change jobs in expectation of better prospects of promotion or professional development, though they are not getting higher wages.

·         Many workers might find the journey to work very tiring and would prefer to work close to their homes.

·         Some workers might relocate to a location which they personally like even though they might get the same wages.

·         Working in large company is considered as a status symbol by many workers and they might change job to work in a large company.

·         Many businesses don’t pay high wages but care for their employees by providing Fringe benefits such as subsidised meals, health scheme, leisure activities. This may also influence a worker to move to these businesses.

Why work for low Wages?

There may be times when a worker would be prepared to work for very low wages?

The reasons might be

·         The worker might not be able to get another job and has to contend with low wages till he finds a better paying job.

·         Low skilled jobs usually have low wages. The worker might not be trained to do skilled job and thus get low wages.

·         The worker might choose to work part-time and does not mind low pay. For example, a student working doing a part time job to earn his pocket money may not negotiate too much for higher wages.

·         In the same way, a worker might view the job as a temporary measure until a better job is available and may not negotiate for better wages.

·         Lack of information is also an important factor. Workers who do not know of alternative jobs usually land up getting lower wages.

·         Age may be a factor which limits the worker to get higher wages.