We have been hearing about the wide differences in the wages structure of accountants and the clerical officers but do we really know what causes it?
The fact that accountants earn higher or let me say encouraging wages/salaries than the clerical officers can be explained by best use of the simply theory demand and supply.
How, I will be explaining in this post. Accountants and the clerical officers constitutes two categories of the labour skilled and unskilled respectively.
If we are to look at the structure labour market of the clerical officers, the supply of the clerical tends to be much more greater than the demand for it.
And in economics, the price of labour(wage rate) like the price of any commodity is determined by the interaction of the forces of demands and supply.
That is to say, if the supply of a particular kind of labour is greater than the demands for it in the baour market, the price (wage rate) will tend to be low, and I fact lower than even the price of the labour whose supply does not exceed the demands for it.
Also on the other hand, if the demand for a commodity is greater than it's supply, as it is the case in the demand for accountants, the price of that commodity, I. E the wage rate in this case will be high.
Much higher than the wage rate of the kind of labour whose demand is lower than it's supply I. E the labour of tne clerical officer in this case.
Also, apart from the theory of demand and supply, another reason why accountants earn higher wage rates than clerical officers is the length of training. It takes a much longer time to be trained as a qualified accountant than or much ore to be trained as a clerical officer.
After the completion of their courses, it becomes normal and reasonable than accountants earn higher wage rates than clerical officers.
The cost of training is another reason why accountants earn higher wage rates than clerical officers. The cost of training a qualified accountant is much more higher than the cost of training somebody to become a clerical officer. It follows therefore than an accountant earns a higher wage or wage rate than a clerical officer.
Among others, the factors discussed above are primarily responsible for the wage differentials between accountants and clerical officers.
I hope you enjoy my post. Feel free to drop your comment below in the comments section.
