Question

It is common that so-called “3D jobs” (Dirty, Dangerous and Demanding) pay lower wages in the real world than non-3D jobs. This seems to contradict what the compensating differential model predicts. How would you defend the model?

Answer 1

All the employees in the world are paid accordingly with the nature of the work. But for every employable service, there will be the skills of utility factor is determined by all the firms. But the firms also determines the wage rate with the risk factor associated with it. Such risk factors are lodged with the cleaning works type like sanitation, public civic works, drainage cleaning works and Drilling works in the fields of oil extraction. Such jobs are categorized as 3D jobs. Employees who are involved in such occupation are not ensured safety for their health. According to American neologism, 3D jobs employees are paid very low than other occupation which has better working and decent oriented environment.. So it is obviously proved that other employees with high skills and qualification earns better wages than 3D jobs.

But differential model theory predicted the ideas of compensating the salary with quite higher rate for the 3D jobs employees. Recently UN organization and other international wings strictly instructs all the nations to pay the satisfied wages by considering the health risk, uncertainty of demand of the work and other negative cause of effects towards 3D jobs. All labor laws are regulated in all the countries to give provision of giving high wages and health insurance coverage. We can also defend the model by explaining the cause of geographical differentiation. When the regions has huge demand for the 3D jobs workers, obviously their pay band also increases accordingly with the consideration of risk factors. It actually encourages the 3D employees to take such occupation by compensating with the expected wages, though they are unwilling to take such occupation.