Question

In 2003, the average weekly earnings of truck drivers was $603 while average weekly earnings of bank tellers was only $395. How might market, institutional, and sociological forces, respectively, be responsible for the higher earnings of truck drivers? 6 MARKS

Answer 1

In the given time period, weekly earnings of truck drivers are significantly higher than bank tellers and it is due to the different forces playing in the economy. The first force is market force that brings the element of wage differentials to the job of truck drivers. It is due to the reason of unpleasant work conditions for the truck drivers, leading to the less supply of workers and higher demand of workers. It created wage differential in favor of the truck drivers and they got higher earnings than that of bank tellers. The second force is institutional force that makes policies to encourage people to take up the job o truck drivers. For this reason, the institutions offer higher wages and earnings to the drivers. But, job of bank teller is considered more safe, comfortable and prestigious than that of truck drivers. So, more payment is done to the truck drivers. The third force is sociological force that considers truck driver jobs to be not so prestigious in nature, than that of bank tellers. So, it is compensated by additional wages and earnings to the truck drivers. It is the reason for the data found out in the year 2003.