Different_Wage_Incomes_in_Australia

Wage incomes differ dramatically from person to person due to reasons such as their income groups, occupational groups, age, gender and cultural background. Over time common trends in the distribution of income from work are created. Employers also use non-wage outcomes for occupations as a bonus or incentive to encourage productivity and decrease wages. A more equitable distribution from work is debatable as there are many advantages and disadvantages for this issue. The difference in wage incomes is influenced by several factors such as income groups, occupational groups, age, gender and cultural background. Income and occupational groups influenced by reason such as education levels, training and skills, for example the highest paid occupations such as managerial/administrative positions receive on average $ 1, 848.90 p/w in 2011, whilst the lowest paid occupations such as labourers and clerks received on average of $ 578.60 p/w in 2011. Age is an important factor in determining income because your age will often reflect your knowledge and experience levels which are influences which can determine your income. For example the period in which men earned the highest earning was between the ages 35-54 whilst women earned their highest earning between the ages of 25-44. Gender has always been a controversial and often discriminative system of determining incomes, there is a major difference in income for casual, part time, and full time work which has the same or similar expectation of duties, for example Male employers accounted for 77.7% of full time position with an average weekly total cash earnings of $1,404.40. Part-time male employees had average weekly total cash earnings of $454.50 and Female full-time employment was 48.8% and part-time 51.2% and their average weekly total cash earnings were $1,167.70 for full-time females and $503.80 for part-time females. Cultural background has a significant impact on employment because there are limitations and less opportunities due to barriers such as education, language, cultural barriers for example cultural beliefs and traditions, and the fact that many cultures such as Aboriginal and Torres Straight Islanders are less civilised and advanced than modern civilisation. Employees are given non wage incomes as incentives, bonus’s, benefits to encourage productivity and to attract and maintain employees. Employers will often use these methods to reduce wages by increasing the working conditions. For example many companies will offer company cars and accommodation, the payment of education and training as well as the payment for their child/ children’s educations, and the payment of meals and travel. There are arguments for and against a more equitable distribution of income, these arguments continues to influence income’s is certain ways for example the arguments for a more equal distribution includes, a higher wage rate for higher paid professions such as lawyers, doctors and managers helps to provide an incentive to participate in education and training which results in higher economic growth and technological advance. Wage incentives also encourage and attract workers into area which are isolated or have a lower quality of life for example rural jobs such as mining and farming. Incentives effects encourage Employees to work longer and harder to forgo personal leisure time. Incentives also encourage entrepreneurial activity and risk taking which provides and creates new jobs, opportunities for people and wealth, for example when an entrepreneur creates a machine it not only can create jobs but it contributes to business’s and the general public welfare as it may be more environmentally and productively efficient, increase further technological advances. There are several arguments against a more equitable distribution of income including, inequality causes a divided society characterised by violence, crime, political instability and in extreme cases rebellion and revolution. Huge differences from the highest paid and the lowest paid jobs also affects peoples quality of life as people on the lower paid jobs have less marginal propensity to save and consume, and people with higher paid jobs have higher marginal propensity to save and consume, this creates inequality and disadvantage amongst the working population. If there was less money spent by the higher paid employees on luxury and more giver to lower paid employees this would help even out the playing field and provide a better quality of life for low or middle income earners. Wage incomes differ dramatically from person to person due to reasons such as their income groups, occupational groups, age, gender and cultural background. Over time common trends in the distribution of income from work are created. Employers also use non-wage outcomes for occupations as a bonus or incentive to encourage productivity and decrease wages. A more equitable distribution from work are debatable as there are many advantages and disadvantages for this issue. The difference in wage incomes are influenced by several factors such as income groups, occupational groups, age, gender, cultural background, non- wage outcomes, wage incentives. These factors contribute highly to the income given by different occupations which creates inequality but also provides the economy with technological advance and economic growth. A more even balance of incomes is needed to help provide more opportunities to people as it gives potential workers more of an incentive to attain and maintain higher paying jobs rather than working in low paid jobs and experiencing poverty or a low quality of life. By Poppy Doolan