FACTORS RESPONSIBLE FOR DIFFERENCES IN THE PRICE OF DIFFERENT KINDS OF LABOUR

There are many factors that are responsible for differences in the prices of different kinds of labour as will be discussed below.

the price of labour is a wage and like the price of all other commodities it is determined by the interaction with the forces of demand and supply.

Therefore the forces of demand and supply combines to determine the different prices paid for the different kinds of labour.

The larger the supply of a commodity all things being equal the lower is the price paid for that commodity.

also they are the demand for a commodity all things because they are the price that will be commanded by the commodity.

therefore if a particular kind of labour as a supply greater than the demand for it the price of that kind of labour which is the wait wait refund but if the demand is greater than the supply is price that is the wage rate will rise as the wage differentials.

the price of the commodities produced is also a factor that is responsible for differences in wages of different kinds of labour. labour as a factor of production and their demand for labour therefore is a derived demand.

that is labour is not demanding for his own sake but because of what it can produce if there is a high demand for the commodities or services produced by a particular kind of labour there is a tendency for that kind of labour to command higher wage rate than other kind of a labor that produces a commodity services of a lower demand in the commodity market.

the risk involved in the particular type of job is also a factor that is a struggle for the differences and the prices of different kinds of labour.

people of the same ski academic qualification and the same length of working experience could hear different wages and salaries because of the different degrees of risk involved in their jobs.

a clerical officer for an example who works in an air-conditioned office can earn less salary than his counterpart who is a custom officer officer who faces a greater risk of losing his life from the wicked and unlawful attitude of smugglers particularly in Nigeria.

another factor that could cause differences in the prices of different kinds of labour is the marginal productivity of labour.

if the marginal productivity of one kind of labour is higher than that of another is price will accordingly be higher and vice versa.

the period of training in is another factor it takes a very long time to train some kind of labor. therefore such kinds of labour should be paid higher wages than that kind of labour that takes a shorter period of training.

Also there are differences in the cost of training of different kinds of labor.

that kind of labour that takes a higher cost to turn will normally receive higher wages than the one that takes a lower cost to train.

for instance it cost more to train a medical doctor than to train a graduate teacher.

The differences in the cost of training of the different kinds of labour is a crucial factor which is responsible for the differences in the wages of different kinds of labour.

institutional factors like the influence of the labour unions and other factors that can cause differences in the prices of different kinds of labour.

from labour unions are much more powerful than the other such powerful labour unions can always succeed in comparing their employers to Grant them higher wages than their counterparts in another establishment.

Special skills or aptitude is also another factor what day of mentioning.

some people have such a special skills or gift which can make them tower above with their colleagues and this could therefore placed them at a special vantage position over their colleagues in terms of their salaries.

The influence of social network is also very important in this regard. in Africa particularly west African countries in Nigeria the influence of social ties is very strong and this helps some people to secure jobs for which they are very high salaries where has that can't happen without such social advantage may not be able to secure such a job on which we can hear such a high salary.

I'll be stopping here today and I will continue in my next post thank you for taking your time to read this post.