💲 Why Wages Differ Between Countries?

💲 Why Wages Differ Between Countries? | 2 Main Factors

Рет қаралды 6,336

Күн бұрын

Why Wages Differ Between Countries? Why person doing the same job earns more in one country than in the other country?
Learn Austrian Economics in a fun way!
LINKS
BLOG: econclips.com/why-wages-diffe...
ANIMATIONS: toin.pl/en/
Opportunity Cost ▶ econclips.com/opportunity-cos...
Supply and Demand ▶ econclips.com/supply-and-demand/
SUPPORT our project: bit.ly/2fgJR9e
Visit our website: econclips.com/
Like our Facebook page: bit.ly/1XoU4QV
Subscribe to our KZfaq channel: bit.ly/1PrEhxG
00:00 Why there are differences in wages between countries?
00:22 Why is work more efficient in some counties?
03:00 How opportunity cost can raise wages?
06:15 Summary
★★★★★★★★★★★★★★★★★★★★★★★★★★
Music on CC license:
Kevin MacLeod: Home Base Groove - na licencji Creative Commons Attribution (creativecommons.org/licenses/...)
Źródło: incompetech.com/music/royalty-...
Wykonawca: incompetech.com/
★★★★★★★★★★★★★★★★★★★★★★★★★★
#Economics #Capitalism #Finance
#EconClips
Econ Clips is an economic blog. Our objective is teaching economics through easy to watch animated films. We talk about variety of subjects such as economy, finance, inflation, money, investing, monetary systems, financial markets, financial institutions, cental banks, wealth, financial crises and business cycles. If you want to know how the economy works and understand why it works this way - join us on econclips.com and learn Austrian Economics in a fun way!
Relevant Tags:
econ clips, econclips, austrian economics, austrian school of economics, capitalism, free market, differences in wages, why wages differ, why people earn more in developed countries, accumulation of capital, work efficiency, opportunity cost, economics, economics explained, market inflation, price index, macroeconomics, economic crisis, economic crisis 2022, 2022 economic crisis explained, finance

Пікірлер: 32

@DiogoVKersting 2 жыл бұрын

I think one important think to make clear is that not only capital goods, but various forms of knowledge as well. This can definitely be called capital (i.e. it was necessary some form of "investment" to develop it), but calling "knowledge" a capital good is inaccurate.

@chigaemezujudith6883 Жыл бұрын

Your English is inaccurate sir

@chigaemezujudith6883 Жыл бұрын

Thank you so much this is well detailed and I appreciate

@alliffmuhamad Ай бұрын

Nice content!

@hieronimusadiyoga579 Жыл бұрын

We know that the higher skills multiply with capitals will produce higher productivity. This productivity (that is filled with high skilled workers) will bring higher wage. In developed countries, they have passed industrialization and step up to the higher technology. In this condition, the workers market will be filled with high skilled workers, but also in turn make a big productivity with less people. These high skilled workers, with compliance to supply and demand law, will have higher wage and more money to spend on luxurious things, travelling, eat comfy food, etc. Meanwhile in developing country, the workers still stuck in a structural condition, where they earn money only to live day by day. That's my opinion, thanks..

@jestinmathew4503 Жыл бұрын

I think the reasons are as follows: 1. Efficiency of workers 2. Capital investment level 3. Cost of living 4. Supply and demand of workers 5. National income 6. Income inequality (GINI coefficient) 7. Inflation effect 8. Weak currency 9. Labour laws and wage policy of the government 10. Paying capacity of the employers 11. Tax policies 12. Economic size and diversification level 13. Amount of tax collected (in case of government employees)

@priyalpatel4250 2 жыл бұрын

Capital flight is also there....

@brownerjerry174 Жыл бұрын

I have thought about this question for very long. These fancy higher productivity and efficiency in doing the same task and use of capital to get machines, and whatever to increase productivity argument is thrown around everywhere, but i literally see it being proven false everyday in front of my eyes. 1) How is a German or American software development team more productive at writing code than an indian team? It doesn't matter how much capital you invest in the equipments. in this case it doesn't matter if you use a MAC or some normal machine, the output will be the same number of lines of code. The devs in both countries are just as skilled and managed efficiently. Then how do you explain the monumental difference in their salaries? 2) A bus driver driving a bus in norway earns many times more than the one in vietnam, despite both of them working 8h a day, or a security guard, or a fast food worker. What we are supposed to believe that the guard in norway is inherently just better at guarding, or the bus driver just drives better than the one in vietnam? 3) If the bus driver in india is carrying 50 passengers each paying 20INR(0.24 cents) summed to 1000INR(12.16) and the one in US is also carrying 50 people but they are paying 2 dollars each, ending up with 100 dollars. In direct comparison, The US driver is far more productive because he generated far more revenue. I know it depends on the cost of living so why can't a third world low income country just get up and decide to increase everyone's wages 10x and become high income? like the only difference is that more money is flowing throughout the economy now, because everyone's services and products made with the labour of those (now highly paid)workers just cost more and therefore are somehow more productive now.

@SpeedDaemon3 Жыл бұрын

Have you seen the entire video? it's about the oportunity cost. Also in India due to many smart people I imagine the competition between employes is high. As a trucker in Europe I can tell you it's about competion (before the trucker shortage, emplyers would pay less sayng there are 100 drivers waiting at the gate to take your place) and about distance. I can do 700 km a day on highway, while a trucker in a undeveloped country would do 300 on single lane roads. It gets worse if I mention Africa or places where trucks drive offroad making less than 100 km per day.

@darius2640 2 жыл бұрын

yeah but each jeff has many friends and family and when he establishes a good paying job he just gives it to them, its either not advertised or advertised just for show and the winner is rigged from the start, and if you are unconnected and don't know any jeffs, you can only see that good well paying jobs exist out there but you can't have one, in theory its like "look how many jobs you have to choose from" but in reality you can only pick from the bottom of the market bad jobs that no one else wants to do, no matter how many years of university education you have

@miranda9691 2 жыл бұрын

Or you can build a business

@YashArya01 2 жыл бұрын

Respectfully, this shows that you don't understand comparative advantage based on opportunity cost. If you deployed your capital inefficiently by hiring "friends and family" who aren't as productive as other candidates, you wouldn't become or remain Jeff in the long run. In a free market (as opposed to today's mixed economy) such things must necessarily be a small part, otherwise your competition will drive you out.

@micah4396 Жыл бұрын

I am as unconnected as it gets and I have a great, secure, "high paying" job considering what I was raised on. I sacrificed my time and energy to build my qualifications necessary for doing this job. No disrespect to you but what I hear from your comment is excuses and finger pointing. If you went to university did you choose a job high in projected growth, have you distinguished yourself from your peers, was the ratio of return high for tuition to payment? In my opinion when you stop looking elsewhere to explain your problems and start looking at yourself that's when you will grow despite any external struggles.

@Anti-CornLawLeague 2 жыл бұрын

Things are (usually) cheaper in poorer countries.

@grandroofing1604 2 жыл бұрын

Wages differ state to state. Supply and demand. Cost of living.

@grandroofing1604 2 жыл бұрын

@Ryan Robichaud Hey my brother. I am originally from New Orleans. We were poor also. I bought my first 3 bedroom brick home for 50,000.00 in a decent part of New Orleans (Westwego). I never thought I would have a chance to leave. I moved to the mountains in Colorado by chance for a girl friend, now wife of 15 years. Roofing Job that pays 50,000 in New Orleans would pay closer 80,000.00 here. On the other hand cost of living is likely the 50% more. That 50,000 (today I guess its worth 175,000) house in New Orleans would cost 5-600,000 thousand here. I agree with you that its not a 100% science.

@marunio435 2 жыл бұрын

Why should people earn the same amount of money? How can anyone stand for that?

@brownerjerry174 Жыл бұрын

You are saying that people doing the same job with just as much efficiency and being just as productive shouldn't at least have comparable wages?

@marunio435 Жыл бұрын

@@brownerjerry174 no, I didn't use the words "the same job".

@xaviers7806 2 жыл бұрын

1 word: productivity

@brownerjerry174 Жыл бұрын

How is a software dev in USA more productive than one in India or Kenya, writing just as many lines of codes, of the same quality, working 8 hours a day and building a product for a global audience? How is the american worker more productive?

@vaylard9474 Жыл бұрын

@@brownerjerry174 Most software companies don't have their own product for the general market, they do outsourcing, i.e. delegated work from larger software companies and specialized products for non-software companies in the national market. Non-software companies can only pay as much for a software product as their revenue allows them, and their revenue may suffer from lower productivity. Also, a poorer economy will have fewer non-software companies that even need such an expense leading to lower demand for software products. If Kenyan software companies start demanding American prices from their national companies, they'll soon be out of work. And when an American corporation outsources to Kenya, they can easily afford to pay much more, but why would they?

@i_hate_google_ 2 жыл бұрын

Let me jump over the mambo jumbo economic talk, the real reasons two employs from two different countries can have varying income is by design, someone has to produce cheep goods so there can be big profits at the end of the year, that's all! Some guy at McDonald's in thee US is going to make more than some guy in India! Same equipment same working hours same everything it's just that one country by design is keeping income low so they can sell many cheep goods!, this guy has no idea what he is on about lol!

@adriandouglas652 2 жыл бұрын

Agree

@matrixman8582 Жыл бұрын

And why can't a worker from India just move to America and earn higher wages working less at a McDonald's?

@i_hate_google_ Жыл бұрын

@@matrixman8582 dud ar you serious?

@matrixman8582 Жыл бұрын

So you understand then

@i_hate_google_ Жыл бұрын

@@matrixman8582?