Question

"The earnings of engineers, doctors, and lawyers are high because lots of education is necessary to practice in these fields." Evaluate this statement.

Now, in contrast from what we have learned this year during the pandemic, can we rightly justify that these positions or ones similar to them, SOLEY, qualify for higher earnings? Is there room to argue that experience is enough or supplemental to both groups of occupations? Explain your answer

Answer 1

earnings concerned with these specialized knowledge is higher undoubtedly,but the statement is not fully correct.the earnings of these practitioners are high due to their skills and ability to perform and discharge their obligations.their services are scarce are in nature and therefore the supply is limited and demand is comparatively higher.therefore apart from their efficiency the concept of demand and supply also plays an important role.we can understand this concept with the help of following example-

• in an urban or developing economy the demand for engineers would be higher rather than in rural or agrarian economy,thus their wages or earnings would also be higher in urban but lower in rural areas.
• same case would be applicable in the case of occupation of doctors.if the clinic is opened in an urban area where the income of the people is high then the earning of the doctor would be higher but if the clinic is opened in village or some rural area where people don't have higher level of income then the doctor would have to lower their fees and subsequently the earning would be lower.

in nutshell we can conclude that the earning of these people also depend on location of operation,level of income of people nearby and these influence the demand and supply.