by Pierre Du Plessis

Created on: October 22, 2008   Last Updated: February 11, 2012

Why is it necessary to determine the value of a job? A large percentage of people wouldn't be able to answer that straight away, but the more you think, the more you realise just how important it is to know how much a job is worth. If you are a young man looking for a job, you want to make sure that you are not being cheated out of higher wages. If you are an employer looking to employ people, you need to know how much money you will need to employ the staff you need so that you can make competitive deals. An employer must know the "price" of the labour he has to pay for. These are just a few of the countless situations you may find yourself in, in which you need to know the value of a job.

There are many defining factors. One of them is the amount of time and effort you need to put into getting qualifications. For instance, a farm worker may train for as little as two years at an Agricultural college, and will be paid less than for instance a medical consultant, who needs to study for years to complete multiple degrees. To give you an idea of the figures involved, a consultant often earns as much as 90.000, whilst a farmer only earns less than 14.000.

Another factor is the value of the goods which are produced. In ancient times, a goldsmith would earn far more than a simple blacksmith, no matter how good the blacksmith is, because the gold rings and necklaces he produced were worth much more than the repairing of the hinges on a wagon or a sword (even if the blacksmith produced much more practical goods). The worked gold is worth more in part because gold is scarcer than iron and in part because gold is harder to work, so the smiths with the skills to do so are scarcer. However, a blacksmith who produces goods of the highest standard would earn more than a poor-quality blacksmith. Likewise, a good author will earn more than a less well-known author because the demand for his books is greater than that for other authors. This is why J.K. Rowling has earned so much money.

If you think about it, you'll realise that these factors have to do with supply and demand, with scarcity. There is a scarcity of medical consultants, since most people aren't willing to attempt so many degrees, not to mention that not everyone passes their final exams. In contrast to that, nearly anyone can become a farm worker, the only possible exceptions being disabled people. Gold is scarcer than iron or steel, so obviously someone who shapes and sells gold will earn more than someone

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