Swiss National Bank

Kristian Blacevic and Tobias Zürcher, published on 15 September 2009

Limitations of wage differentials

At the beginning of their essay, the authors state that it is probably unrealistic to demand “equal pay for everyone”, but that at least the principle of “equal pay for equal work” should be applied.

They then move on to reflect on the meaning of “equal work”. Does it refer to equal effort or equal results? It would not be fair if it referred to equal results, since some people are faster at producing something and find it easier than others.

The authors argue that even if equal effort was meant, it would not be possible to apply the principle. In a market economy, the value of a product is governed by supply and demand and not determined by some type of authority that takes effort into account. As a result, some people work really hard and are not paid for it (e.g. parents raising their children) or there is no demand for the products and services.

Remark: This sample serves illustration purposes only. To prevent cheating, essay summaries in category 1 will only be added to the factsheets after the submission deadline.

Extract from feedback report

The authors start by making a statement and then contemplate its meaning from an economic point of view. They look at the subject in great depth and show that they are able to apply what they learned in a different context and use it to answer an advanced question.

Category: Challenge question
Topic: Limitations of wage differentials
Type of work: Group work
School type: Gewerblich-industrielle Berufsfachschule (GIB)
Name of school: Technische Berufsschule Mittelland
Teacher: Roswita Kress