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Research into the distribution of income by sex, region, ethnicity and occupation in the UK Labour Market; Explain why these differences occur?

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Introduction

Research into the distribution of income by sex, region, ethnicity and occupation in the UK Labour Market; Explain why these differences occur? The distribution of income in the UK, although in some instances illegal, seems to correspond with different groups of the UK labour force divided by sex, region, ethnicity and occupation. For years the government have tried to remove these barriers to create a fairer income distributed labour market, but still inequality exists. In this essay I shall look into how much the income of these groups differ from others and why exactly these differences occur? Differences in income depending on gender receives the most attention by the UK press. Despite the government efforts of bringing in various acts to stop gender discrimination, it appears that the difference in pay still very much exists. In some extreme cases, women doing exactly the same job as men receive less pay. This was made illegal by the Equal Pay Act 1970 which makes it unlawful for employers to discriminate between men and women in terms of their pay and conditions where they are doing the same or similar work. Today the difference in income is mainly caused by the fact that men are being given the higher role jobs in companies, such as manager and director positions, leading to higher income. So in order to solve the question of 'Why these differences exist?' ...read more.

Middle

, Scotland- �10.11, Wales- �9.64 and Northern Ireland- �9.55 The main reason why these regional differences occur is due to demand and supply. In London there is an extremely high demand for workers. Most of the UK companies' headquarters and foreign offices based in the UK are in the City of London. The generated demand from these firms is massive for skilled and qualified workers who earn much more than low skilled workers, such as those working in retail for example. The lower skilled occupations, such as retail, also have to pay higher wages than they would have to if they were located outside of London, as people in London have much higher living costs than the rest of the UK. High living costs include high housing prices, rent, transport and other services. Regions, whose inhabitants earn relatively low income, usually have very few large firms and hardly any MNC's and TNC's. This results in supply (i.e. the labour force) outweighing the demand from the regions firms. Thus leading to a high amount of people willing to work for lower wages, or otherwise face unemployment. Many of the regions, who now face low income rates, are that of mining pasts, when mining came to a halt the average income in the mining regions dropped dramatically, simply due to no work. Another factor which affects the income in regions is the size of the population living there. ...read more.

Conclusion

* Another factor which affects how much an occupation pays, is the employee's marginal revenue productivity. The theory is that workers wages are paid the value of their marginal revenue product to the firm i.e. the change in total revenue for a firm as a result of selling the output produced by an extra worker. This could be used to explain why a software designer, who earns a lot of money for his/her company, is paid more than a bar worker, who earns much less for his/her employer. In conclusion, the amount of income an employee receives is mainly down to their occupation which I believe is fair. I also find it fair that people who are living in certain areas, such as London, receive more income than other regions as their difference in wages have to make up for the huge differences in living costs. The UK government have tried their best to make these the only reasons why some are paid more than others, but there is still some inequality and discrimination in the work place which has not yet been removed, despite the various Acts brought in. In the near future I believe that these inequalities will eventually fade out, but today the UK is still very much in the transition of becoming a fair labour market, and so unfortunately gender and race discrimination will affect some potential employees for the time being at least. ?? ?? ?? ?? ...read more.

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