Research shows that what one earns in the US is hinged on his or her education, industry, ethnicity, geographical location, occupation and gender among other factors (Abousamak, 2018). Various calculators consider innumerable measures when determining wage differences, which gives rise to variance in wages differing from calculator to calculator, besides occupation to occupation.
Additionally, the city and state one resides and works also determines their wages and living standards (Abousamak, 2018). For instance, while a family living in South Dakota may be satisfied with a salary of $45,000, a person in Hawaii would need approximately $60,000 to enjoy a similarly comfortable life (Abousamak, 2018). Such other localities as New York, Connecticut, and Massachusetts need a whopping $68,000 to fund such a life.
According to data derived from MIT's wage calculator, most citizens depend on minimal amounts to meet their basic needs. While determining this measure, the calculator puts in consideration factors such as health insurance, child care, regular costs, and food to determine what one would consider a sufficient salary (Heckman, 2010). According to the Bureau of Labor Statistics wages earned by U.S workers has always been a controversial issue due to disparities between races, genders, and ethnicities.
Further, the bureau states that significant salary differences between male and female employees are due to location and occupation (Leavitt, 2015). According to statistics, individuals working in management and its related occupations earn an average of $64,000 annually (Cullen, 2015).
On the other hand, those in the service industry only make a meager $28, 280 approximately every year. Further, people working in large metropolitan towns pay a higher cost of living compared to those in inner cities and upcountry (Cullen, 2015).
Major Question/Issues
The topic primarily answers the question of how wages differ between races, genders, ages, and ethnicities and enumerates the factors contributing to this worrying trend. According to a survey done by BLS, in 2017, men earned approximately $49 and above while women received 10% less than men (Mazumder, 2010). Race and ethnicity played a significant role in this remuneration's discrepancy between women and men. For instance, while women earned about 80 percent of what their male counterparts earned, conversely, black women took home an amount equivalent to 96 percent of what their black male counterparts received (Mazumder, 2010).
However, black men earned less than what whites did. The same applied to white and black women (Mazumder, 2010). Comprehending these critical wage issues also shows how job opportunities are scarce in America. The amount one earns also depends on age. For example, men above 55 years take home the highest annual earnings while women between 45 and 54 years earned averaged $43,000 annually (Mazumder, 2010).
Sub-Issues
Wage differences are also a result of experience, education, ethics, and traits. Further, this topic is essential to discuss since the contemporary worker is capitalizing on the debate to haggle a bigger paycheck as they deem fit. Education is also a determinant in this debate on the differential wages between men and women in the same profession.
Young adults of about 25 years and lacking a high school diploma earn a maximum of $27,612 while college graduates earn even 3 or more times this amount annually (Cullen, 2015). Advanced degrees graduates (master's or professional degrees) receive a minimum of $77, 324 annually (Cullen, 2015). Determining how much one is deserving in any new job depends on their potential productivity and what experience they bring to the table. When such a situation is evaluated, the salary affects what the expectations of the job are and how they should be met. Owing to the criticality of the debate, workers in the U.S use the matter as a bargaining tool to haggle over their salary particularly for new employees who seek to show how much they deserve to be paid based on their education and experience.
References
Abousamak, A. (2018). The effect of earning persistence and components of earning on the predictability of earning: Evidence from an emerging market. International Journal of Economics and Business Research, 16(3), 405. doi:10.1504/ijebr.2018.10015236
Bátiz-Lazo, B. (2010). Average combined (income plus consumption) and income tax wedges for single individual earning 100% of the average wage. Oxford Scholarship Online, 27-37. doi:10.1787/888932482688
Cullen, J. B. (2012). Professional Differentiation and Occupational Earnings. Work and Occupations, 12(3), 351-372. doi:10.1177/0730888485012003006
Leavitt, J. (2015). Low Wage Workers and High Housing Costs. Labor Studies Journal, 30(2), 41-60. doi:10.1353/lab.2005.0038
Mazumder, B. (2011). Black-White Differences in Intergenerational Economic Mobility in the US. SSRN Electronic Journal, 19-60. doi:10.2139/ssrn.1966690
