CHOICE OF OCCUPATION

Choice of Occupation
It is the process of selecting different job by different people according to their education, training, skill, talent, interest etc
Factors affecting choice of occupation
 Wage factors
 Non wage factors
Wage factors
 Highly skilled, risk taking and difficult jobs are paid higher wages
 The experienced, trained and highly educated workers will get high wages.
 If the supply of labour is low, then wage rate will be high and if the supply of labour is high then wage rate will be low.
 Non wage factors
 Natural skill : The professions like actors, singers, artist etc need some in born skill.
 Education and training: Selecting the job according to education and training.
 Class attachment: Children may follow their father’s foot step.
 Size of the firm: Prefer large firm as a part of prestige.
 Opportunity for promotion: Accept the job which has more chance of promotion.
 Fringe benefits : Benefits other than salary like free insurance, medical, housing etc
 Working hours : Prefer the job which has less working hours.
 Working condition and job satisfaction: Select the job which has better working condition and more job satisfaction.
 Job security : Select permanent job instead of temporary
 Wage difference between occupations
or
 Why do different occupations have different rates of pay?
 Trade Union : Members of trade union will get higher salary than non members.
 Unsociable hours of working : Occupations need to work night time also, then salary will be higher
 Risky, dangerous and dirty job : Job is more risky, dangerous and dirty, the salary will be higher
 Talent and skills : Special skills and talent required like actors, foot ball players etc, then salary will be higher.
 Lack of information and awareness : Worker has no information about job opportunities, salaries etc , then payment will be lower.
 Education and training : If an occupation required more education and training, then salary will be higher.
 Job satisfaction: Job satisfaction is high, then salary will be lower.
 Other allowances : Many allowances like food allowance, accommodation allowance etc then basic salary will be lower.
 Demand for the product : If the demand for a product increases, then demand for l;abour producing that product increase and salary also will increase
Wage difference with in occupations
 Profit sharing
 Regional difference
 Experience
 Supply of labour
 Increments
 Difference in sex
 Racial discrimination
 Child labour [Explain]
Wage difference between sectors
Primary sectors paid less except mining. In this sector supply of labour is high, they are less skilled, educated and trained.
Secondary sector’s payment also will be low, because work is simple, repetitive and labour can be replaced by machinery.
Tertiary sector’s payment will be high, because it is highly labour intensive, labour cannot be replaced by machinery, the workers in this sector need more education, training, skill. The menial workers like cleaners, waiters etc do not get higher wages.