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Yokav Yokav
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6 years ago
What is comparable worth, and why is there controversy about the idea?
Textbook 
Business Essentials, Canadian Edition

Business Essentials, Canadian Edition


Edition: 8th
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6 years ago
Comparable worth is a legal concept that aims at paying equal wages for jobs that are of comparable value to the employer. This might mean comparing dissimilar jobs, such as those of secretaries and mechanics or nurses and electricians. There is a debate about comparable worth because there is disagreement about its feasibility. Supporters of the idea say that all the jobs in a company should be evaluated and then rated in terms of basic dimensions such as the level of skill they require. All jobs could then be compared based on a common index. People in different jobs that rate the same on this index would be paid the same. Opponents of comparable worth object on the grounds that it ignores the supply and demand aspects of labour. They say that legislation forcing a company to pay people more than the open market price for their labour (which may happen in jobs where there is a surplus of workers) is just another example of unreasonable government interference in business activities.
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