Discuss why some occupations receive higher wages than other occupations. [7]
There are various reasons why some workers are paid more than others. One of the most important reasons is that the level of training and education. Some occupations need qualified and trained workers and managers who spend days of training and education where as other occupation may not need to have such educational qualification. So, there will be difference in the wages. Secondly, workers may be involved in trade unions while others may not which will make some difference in the wages. Thirdly, if there is a role of the government in minimum wage legislation while other occupations might not, then there might be an existence of wage difference between workers. Moreover the demand for the final product is also an important factor. The higher the demand for the product the higher the wage rate will be.
It was reported in 2002 that people in Germany were expecting tax rises and an increase in unemployment.
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