Wednesday, September 20, 2006

Freaking out on 'Freakonomics'

"... an immutable law of labor: when there are a lot of people willing and able to do a job, that job generally doesn't pay well. This is one of four meaningful factors that determine a wage. The others are the specialized skills a job requires, the unpleasantness of a job, and the demand for services that the job fulfills.

The delicate balance between these factors explains why, for instance, the typical prostitute earns more than the typical architect. It may not seem as though she should. The architect would appear to be more skilled (as the word is usually defined) and better educated (again, as usually defined). But little girls dont grow up dreaming of becoming prostitutes, so the supply of potential prostitutes is relatively small. Their skills, while not necessarily "specialised", are practised in a very specialised context. The job is unpleasant and forbidding in at least two significant ways: the likelihood of violence and the lost opportunity of having a stable family life. As for demand? Let's just say an architect is more likely to hire a prostitute than vice versa."

- "Freakonomics", Steven D. Levitt, pg. 105-106

2 Comments:

Anonymous Swapnil said...

No opinions, no hypothesis...Just Bakwas..
Time has come to chabge this, hereonwards we r the one who have our own opinion for this world...so its no BAKWAS....
Jai Bissthot......

8:03 PM  
Blogger Arkus Caesar said...

bhau thote..bhai bissu..gaanja kya rate me mila tu log ko??

1:10 AM  

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