Discuss at least two (2) factors that you believe influence inter-industry wage/salary differentials.
Respond to classmate:
I am going to use the hospitality industry in Las Vegas to do some comparisons, specifically hotel front desk representatives.
The type of work that is required is the same across the board. You must greet guests, check them in and out of the hotel and make their first point of contact amazing. You set the tone for their stay at the hotel. This is the same at any hotel.
The first group of front desk clerks work on the famous Las Vegas Strip, specifically MGM Properties, who own quite a few hotels on the strip as well as across the country. The second group of front desk clerks work in hotel/casinos that are off of the strip in Las Vegas.
Although the duties for each are the same, the wage differential is big. A front desk clerk off of the strip has an average annual salary between $27,000 – $33,000 per year where as a front desk clerk on the LV strip makes an average annual salary between $38,000 – $43,000 per year.
Two factors of why I believe their is such a wage difference is location and size of company. The Las Vegas Strip is a destination place for tourists from all over the world and the rates for their hotel rooms tend to be higher, especially during peak seasons and special events. They are also owned and managed by very large corporations and are able to pay higher wages. The properties off of the strip cater more to locals and are usually owned by companies that are not as large. They do not have the high guest turnover rate and income potential as the strip properties.