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S E43: Why wages vary - Why some of us get paid more than others

Think Like An Economist

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Compensating Differentials Lead to Lower Wages

The higher wageis a reflection of how the market views a job's attributes. Your opportunities are shaped by the choices of others. You want to think about your tastes relative to the tastes of other people. Try to find a job where either you enjoy it a lot more than other people, or you dislike the bad espics less than others do. The fact that other people don't want to do means less supply of labor. So in this way, having unique preferences can be a real asset for you in the labor market.

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