Why Do Some Jobs Pay More Than Others

This is not only you, but many people often wonder why do some jobs pay more than others.

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• Most Easy Majors That Pay Well in
• 7 Top Degrees in Demand for the Future 
• 9 Highest Paid Business Degrees: Makes the Most Money

Some jobs pay more than others because of the demand of the job, location of the job, industry, level of education, and experience required for the job.

For example, a doctor is paid more than a waiter. Why?

It’s because you need higher education to become a doctor. Also, the doctor profession is a specialized profession and anyone cannot do it.

On the other hand, waiter jobs do not require higher qualifications, and job requirements are not very strict.

This is the simplest example to understand why do some jobs pay more than others. However, in this article, we will discuss all the factors that cause the differences in salary. Let’s begin

Why Do Some Jobs Pay More Than Others?

Some jobs pay more than others because some jobs require higher qualifications, work experience, and the job demand is high. Also, job location and job industry play an important role in determining job pay.

Let’s discuss each factor in detail.

Higher Education, Higher job Pay

The heading says it all. With the higher qualification, you have better chances to get higher pay. A graduate will be paid more than an undergraduate. The job pay also varies depending on the major you have studied.

A business degree is considered one of the most easiest and commonly selected degrees. Therefore we researched and published a list of business degrees to give you an insight.

Here is the list of 9 Highest Paid Business Degrees that Make the Most Money. 

According to this list, business degrees with accounting majors are paid the highest among the other business degrees. 

Using accountant jobs as an example we will look into various factors that will affect the pay.

Exception rules

• Work experience: An entry-level accountant is paid $27,000per year  whereas a senior accountant is paid up to $111,000 per year.
• Industry: According to Zippia.com, an accountant in the Hospitality industry is paid the highest salary compared to other industries.
• Location: Also, an accountant working in New York receives $66,280 per year compared to Washington where the average pay is $66,178 per year

More experience, More job pay

Work experience plays an important role in determining the pay in any field. In the same industry, an experienced worker is paid more than an inexperienced worker. Similarly, an entry level job that does not require much job experience will have lower pay. While a person working at the managerial position in the same field is paid a high salary.

The keyword here is the same industry. Note that jobs pay to vary from industry to industry. The salary of an entry-level job in the technology industry varies from the salary of an entry level job in the biotech industry.

Let’s look into the list of 7 Top Degrees in Demand for the Future. According to the list, Data analyst is one of the top degrees and its demand is increasing day by day. 

The entry-level salary of a data analyst is $55,000 per year. While a senior data analyst is paid $100,000 per year.

The above figures can vary depending on the exception rules given below.

Exception rules

• Industry: A data analyst is paid upto $91,035 per year while working for Professional companies which is the highest paying industry for them.
• Location: Similar to industry, the location of the job impacts the pay. For example, a data analyst working in New Jersey gets an average of $87,523 per year compared to working in New Mexico at the average of $55,655 per year.
• Education: Most data analyst majors in business.
• Job Demand: 

Low labor supply, High jobs pay

It is one of the basic rules in economics. When there is a low product supply, the price of an item increases. The same rule is applied to the job industry. Lower the labor supply, the higher will be the pay. 

This is because businesses need specialized professionals to do a task. This increases the demand of professionals. But sometimes, for various reasons, there are fewer professionals to do the task. In that case, businesses are willing to pay more to hire a professional.

For example, due to covid 19, the demand for healthcare workers has increased. But the supply is the same as the previous years. To attract healthcare workers, big firms in health care increased the job pay of health care workers.

Exception rules

• Education and experience: Let’s continue with the example of healthcare workers such as nurses. To become a nurse, you need a special course designed for nurses. Also, with high work experience, you have a better chance to be promoted as head nurse. The average Head Nurse salary in the United States is $114,835.

Popular industry, High Job pay

There are different industries in the world. These industries provide various services and products to consumers. 

Let’s say the finance industry such as banks, accounts, and tax consultants deals in money related services and products. While the business in the construction industry focuses on building infrastructures.

Now we are clear about the industry. Next comes the jobs in the industry. For a further explanation, we will focus on the managerial position. 

Do you think a finance manager in a bank is paid the same as the finance manager in a construction firm? The answer is No.

The finance industry is known to be the highest paying industry. A job in the finance industry pays much higher than the job in any other industry.

Exception rules

• Education & Work experience: Graduates with a Finance major can expect to earn an average salary of $71,367 per year or $34.31 per hour in the USA. 
• Industry: Finance major graduates tend to earn the highest salaries in Finance companies, Technology companies, and Hospitality companies, according to our analysis.
• Location: New York, NY has the highest salary for Finance majors at $85,291 per year.

High Job Demand, More job pay

Before we talk about job demand, take a look at the list of 7 Top Degrees in Demand for the Future 2022

It’s clear from the title that the post includes a list of high demand degrees. These degrees lead to high demand jobs.

Here we will talk about data analytics and its demand and pay. According to https://www.prospects.ac.uk/ , the data analytics degrees are in high demand across all sectors, such as finance, consulting, manufacturing, pharmaceuticals, government, and education.

The high demand of this profession leads to more job pay.

Not only is this one of the best growing careers at a whopping 31 but a lot of these jobs are remote and pay extremely well. You can make upwards of $80,000 to $100,000 right out of college.

An experienced data scientist can earn well over $200,000.

Good Job Location, high job pay

A person working in Asia and Africa is paid less compared to a job pay in Europe or the USA. This is because of the economical condition of a country. 

Well, a doctor in Africa is performing the same task as a doctor in the USA. But you are well aware of the difference in earning of two doctors without checking any numbers.

That’s not all.

The job pay even varies between different cities of the same country. The capital cities and business oriented cities are known to pay much higher compared to other cities in the country.

Exception rules

Although we have placed location at the end of the list, it is a very important factor that influences the job pay. Let’s dive into it

• Job demand: Every location has a dominant industry. Some area consists of agricultural land while other areas have a lot of manufacturing industries. Some places are located near the mountains. While some places are situated near the sea. And for example, if you live near a sea port, there will be high demand of jobs related to marine. 
• Education and work experiece: Although all the chartered accountant get the same education and experience, the pay is different in different countries. According to google, here is the list of Countries With The Highest Chartered Accountant Salary In The World
• THE UNITED KINGDOM. Average Salary – US$165,000
• IRELAND. Average Salary – US$132,000
• SWITZERLAND. Average Salary – US$120,000
• CANADA. Average Salary – US$113,000