"Pay is one of most important issues at work because it is linked to power relationships between employers and workers, and can affect morale, motivation, productivity and performance. (Heneman and Werner, 2005) Therefore, it is important to understand how pay differences come about and what the biggest influencers are."
Why are there pay differences? Neoclassical theory, Non-Competing Groups, Human Capital Theory, Marxist perspective, sociological and institutional perspective, role of the state, role of the employer.