Reasons for wage difference between regions
- Differences in cost of living e.g. towns and rural areas
- Differences in the risks of performing jobs e.g. Dangerous, disagreeable, hazardous and risky work carry higher money wages to attract larger supply of labour
- Differences in the products e.g. area with vanillas compared with those with cotton
- Government policy on income and wages tend to favour some regions
- Employer’s ability and willingness to pay are not the same in different regions
- Racial discrimination
- Presence of labour unions
- Steadiness of employment: Places with seasonal or irregular occupation pay higher wages whereas places with regular employment may low wages.
CATEGORIES Economics
TAGS Dr. Bbosa Science
