Chapter 9 of 10All chapters
Chapter 9 of 10
Work and wages
What determines pay.
Why wages differ
Pay tracks the scarcity of a skill and the value it produces, plus bargaining power. Effort and importance matter less than most people expect.
- Compare total package: pension, hours, security and travel time.
- Self-employment carries costs and risks that a headline rate hides.
Automation and change
Technology tends to change the tasks within jobs before it removes the jobs themselves. Adaptable skills hold value better than narrow ones.