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Wage Differentials-Adam Smiths theory

The Adam Smith’s theory of wage differentials is least reliable with a case in which a: (1) Chef in the five-star restaurant earns a higher wage than cook in the fast food restaurant. (2) Security guard for U.S. firm in Baghdad is paid more than the security guard in Denver. (3) Bulldozer operator is salaried more per hour in winter in Alaska than in summer. (4) Gas station in a small town pays clerks higher salaries than are salaried by an almost similar gas station across the street. (5) Window washer in the high-rise building is salaried more than any janitor in similar building.

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