Workers, Wages and the Labour Market: Question 1
Syllabus 3.3
Amara is a qualified veterinary nurse who has received job offers from two different animal clinics. Before deciding which offer to accept, she compares several features of each job.
Which of these features is a non-wage factor that could influence Amara's choice of occupation?
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Worked solution
Step 1: Recall the distinction between wage and non-wage factors
A worker’s choice of occupation is influenced by two broad groups of factors:
- Wage factors, any form of direct monetary payment for doing the job, including basic pay, overtime pay, bonuses and commission.
- Non-wage factors. Everything else about the job that is not a direct payment, such as job security, working hours, holiday entitlement, working conditions, opportunities for training or promotion, and how satisfying the work itself is.
Step 2: Classify each option
- A. Hourly pay rate: this is money paid directly for hours worked, so it is a wage factor.
- B. Overtime pay: this is still a direct payment for extra hours worked, so it is also a wage factor, even though it is not part of the basic rate.
- C. Job security and paid holidays: neither of these is a direct payment. They describe how secure the job is and what non-cash benefits come with it, so this is a non-wage factor.
- D. Signing bonus: although it is only paid once, it is still a cash payment for taking the job, so it is a wage factor.
Step 3: Rule out the wage-based options
Options A, B and D all describe different forms of money Amara would be paid, directly or indirectly, for doing the job. Only option C describes an aspect of the job itself rather than a payment.
Final answer
Job security and paid holiday entitlement are non-wage factors, option C.