Problem
Read, study and analyze, then write an analytical analysis to discover why there are differences between salaries. Use the following guiding questions. You should not do your analysis using the question and answer technique. Below are the median annual wages paid to selected occupations listed in the 2010-2011 edition of the Occupational Outlook Handbook. Study the wages paid for these occupations, and then answer the questions that follow that are intended to find out why there are differences in wages. Relate these reasons to the internal and external pay mix factors discussed in the text.
The Occupational Outlook Handbook is published by the US Bureau of Labor Statistics.
Occupation Average annual salary
Surcharge $40,010
Librarian $53,710
Construction worker $29,150
Computer systems analyst $77,080
Police officer $53,210
Truck operator, heavy machines $37,730
Lawyer $113,240
Guiding questions
• What factors can explain the large differences between the salaries that compensate various occupations?
• What factors can explain the differences between salaries for an identical occupation in the same organization?
• What factors can explain the differences between salaries for an identical occupation in different organizations?