Personally, for me it very unethical that a 20-year-old with no studies can earn so much by kicking a ball unlike compared to a doctor who studied most of their lives to save humans earn much less compared to footballers. In order to analyze and find out the reason for this huge disparity is that basic economic theory suggests that salaries depend on supply and demand of tservices. This paper will economically analyze the wage disparity between doctor and footballers.
Wages are greatly determined by the market forces of demand and supply. When the demand of a particular skill is more and the supply of that particular skill is less then wages will be more. On the other hand, if the demand of a particular service is less and the supply is more then wages will be less. Salaries are dependent on the worker’s marginal revenue product which is the demand of the service that the worker provides. Some of the factors within the marginal product that determine its demand may include the profitability of products, productivity of worker and price of good (Elayan, 2014).
When we analyze the labor market for soccer, we find out the demand and supply market greatly determine on the player wages. For example for soccer player who plays at the first division in the Spanish league will be paid a 1000 of euros a week compared to doctors this is because there is a high demand of people who visit stadiums to watch this professional footballers play and for them to visit these stadiums they have to pay about 20 to 200 euros per each games, clearly showing us the demand for people to be entertained by footballers is very huge.
In terms of supply we find that there not so many professional footballers with those skills to entertain people and that is where the economic theory of supply and demand comes in. Which talks about when supply is low then we find that price tend to be high. This ideally applies to the soccer industry (Kalecki, 2013). When comparing the footballer profession and doctors you then find that there is a huge demand for people to be entertained by watching football and a relatively lower demand for people who visit doctors.
In addition to this because of the huge demand for footballers’ services, people pay a lot in order to see them play. Let it be noted that not all footballers get six figure salaries as some players who play at lower leagues get little pay because the demand for their service is low and thus the cost of seeing them is low or sometimes free (Keynes, 2018).
To sum it up, professional footballer gets paid more because of the market forces of demand and supply. Although doctors save our lives the demand for their services as compared to footballers is low and that is why they seem to be paid much lower wages as compared to professional footballers.
References
Ehrendberg, R. G. " Smith, R. S., 2016. Modern lobor economic. Thoery and public polic. Abingdon: Routledge.
Elayan, N., 2014. is it ethical that soccer players earn more than doctors. [Online]
Available at: https://thevoice.barcelonagse.eu/2015/01/14/is-it-ethical-that-soccer-players-earn-more-than-doctors/
Kalecki, M., 2013. Theory of Economic dynamics. United Kingdom ed. Abingdon: Routledge.
Keynes, J. M., 2018. The general theory of employment, interest, and money.. Berlin: Springer .
