4.3 Occupation and Earnings IGCSE Economics 4.3 Occupation and Earnings

Learning Outcomes Identify the factors affecting an individual’s choice of occupation (wage and non-wage factors) Describe the likely changes in earnings over time for an individual Describe the differences in earnings between different groups of workers

Task Put the list of jobs in order of lowest to highest paid. Look at the following article to see the expected salaries of different occupations Article

Questions: What is the best paying occupation? Why do you think that this is the case? What is the worst paying occupation? What is the average salary of all occupations per year? Find 3 occupations which have had a % pay increase since 2011. Can you think why this might be the case for each? Find 3 occupations which have had a % pay decrease since 2011. Can you think why this might be the case for each?

Task In pairs discuss…… What factors influence how much workers are paid?

Why are some workers paid more? Some workers are paid more than others because of: Skills Experience Level of Responsibility Unsociable hours Danger Productivity Supply Vs Demand of Labour

Given this….. How are an individual’s earnings likely to change over time? Draw a sketch like this….. Label any key milestones Earnings Age

Wage Factors Most people will supply their labour to firms to earn an income. pay wages to workers to supply their labour to produce goods and services. Paid employment therefore provides people with money to buy the goods and services they need and want and cannot produce themselves.

Performance Related Pay How are workers paid?? Payment Methods Fringe Benefits Time Based Systems Wages Overtime Salaries Results Based Systems Piece Rates Commission Bonuses Performance Related Pay Profit Sharing In what sorts of occupations would these typically be used? What benefits or problems can you think of for each of these methods of remuneration?

What are fringe benefits? Any other perks of the job which do not involve direct payment of money to the employee What kind of Fringe Benefits do companies offer?

Fringe Benefits Any other examples you are aware of? Ask your parents if they get any fringe benefits with their job

Why choose this job? WAGE FACTORS + NON-WAGE FACTORS

You and your job choice Think about a job that you fancy doing when you are older (don’t worry, no-one will hold you to it!!) Why have you picked this particular career? Lets share to find out why you have chosen your future careers….. Write a list of the non-wage factors that influence a worker’s decision over what job to do…….

Non – Wage Factors

The differences in Earnings…… Who Earns More? …….Why??

And Finally….. Public Sector Worker or Private Sector Worker?

What do these figures show?

Trends In Pay…..

The labour market …… Supply and demand

Task…. Draw a supply and demand curve for labour Make sure you: Label the axis Label the S and D curve correctly Label the Equilibrium price and quantity

Questions….. In the labour market… 1. Who are the suppliers? 2. Who are the buyers? 3. What does the equilibrium price represent? 4. What does the equilibrium quantity represent

Effect of wage rates on supply and demand As the wage rate for a particular occupation (teachers) rises. What will happen to: Supply Demand

Group Task Split into 4 groups. Each group are going to discuss some questions relating to shifts in the supply/demand for labour You will then present your findings to the rest of the group.

An increase in demand for labour??? What causes the demand for labour to increase? What happens to the: Demand curve Equilibrium wage rate Equilibrium number employed

An decrease in demand for labour??? What causes the demand for labour to increase? What happens to the: Demand curve Equilibrium wage rate Equilibrium number employed

An increase in the supply of labour??? What causes the supply of labour to increase? What happens to the: Supply curve Equilibrium wage rate Equilibrium number employed

An decrease in the supply of labour??? What causes the supply of labour to decrease? What happens to the: Supply curve Equilibrium wage rate Equilibrium number employed

Minimum Wage Legislation

Question….. Why does the government deem minimum wages to be necessary?

The effect of minimum wage levels What would happen if the minimum wage rate is set at: W1 W2

Your thoughts…..

Homework Discuss whether governments should implement minimum wage rates? Top tips for your answer….. Use a SLAP! Stakeholders Long-term vs short-term Advantages and Disadvantages Prioritise Handwrite answers in your exercise books

Most people specialize at work Advantages They make best use of their skills and abilities They can improve their skills further by repeatedly carrying out the same or similar tasks More-experienced and skilled employees usually earn more than less-experienced and unskilled employees because they are more productive and demand for their labour by firms is greater Disadvantages They must rely on others to produce the goods and services they cannot produce themselves Doing the same job for many years may become boring People can lose their jobs if their skills or occupations become unwanted as consumer demand and/or technology changes