Economistsandexpertsonwageshavelongtriedtodiscoverwhatfactorswereinfluencingpeople’ssalaries.Mostofthefactorstheylistedoneortwocenturiesagoarestillimportanttoday.Oneofthoseiseducation:collegegraduateshaveearnedandarestillearningmorethanworkerswhohaveonlyfinishedhighschool,andhigh-schoolgraduatesearnmorethanworkerswhodidn’tcompletetheirstudiesthere.
Thedifficultyandlengthofpreparationforaprofessionalsoplaysapartinthesizeofthesalary.Dangerandresponsibilitymakeadifferencetoo—themanorwomaninchargeofaproject,thepersonperformingadifficultordangeroustask,theairplanepilotresponsibleformanyhumanlives,usuallygetapropercompensationfortheirpains.Andyetthereareexceptionstothoserules.Duetotheneedsofmodernindustry,technicianswithnocollegeeducationarenowcommandinghighsalaries,muchclosertothecollegegraduates'salariesthantheyusedtobeinthepast.
Andtherearemanyjobsinwhichdangerdoesn’tbringmuchcompensation.Whydoesn’tafiremanearnmorethanapostalclerk,forexample?Andwhataboutthepolicemanandthecoalminer,whorisktheirlivesforamodestsalary?Theanswerissimple.Actually,salariesaregovernedbyacombinationoffactors,themostimportantbeingoneknownasthelawofsupplyanddemand,whichsaysthatthevalueofgoodsandservicesisdeterminedbythequantityavailablecomparedwiththenumberofpossiblebuyers.
Iftherearemorechickensonthemarketthanpeoplewishingtobuythem,thepriceofpoultrygoesdown.Ifthenumberofspecializedengineersismuchlargerthanthenumberofpositionsopentothem,thesalariesdropevenforthemostimpressiveapplicants.