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IGCSEEconomicsCambridge (CIE)Revision Notes3. Microeconomic Decision-Makers3.3 WorkersFactors Affecting the Choice of Occupation

Syllabus Edition

First teaching 2025

First exams 2027

Factors Affecting the Choice of Occupation (Cambridge (CIE) IGCSE Economics): Revision Note

Exam code: 0455 & 0987

Steve Vorster

Written by: Steve Vorster

Reviewed by: Lisa Eades

Updated on

Wage factors

  • The occupational choices of workers are influenced by a range of wage and non-wage factors, which are often held in balance when making decisions about where to work

  • Wage factors are financial payments that workers receive for their labour

  • Non-wage factors incorporate a range of influences that are meaningful to a worker

Wage factors that influence occupational choices

Factor

Explanation

Wages

  • An agreed amount of money per hour 

  • E.g., if a student works in a restaurant for 6 hours, 5 days a week and she gets paid $10/hour, her weekly wage is $300 (6x5x$10)

Salary

  • Employment contracts often state the agreed annual salary the employee will receive

  • This is then divided by 12 and paid monthly (in the USA it is divided by 24 and paid every 2 weeks)

  • The hours worked monthly may vary but the pay received is always the same

Commission

  • Often used as payment to salespeople

  • It is typically a percentage of the value of the transaction involved, e.g., estate agents receive 3-7% of the selling price of any property they sell

  • This can motivate employees to maximise sales

Bonus

  • Money paid in addition to a salary and is usually a single annual payment

  • Often paid when the company earns high levels of profits, or as a reward for exceptional worker performance

Piece rate pay

  • A fixed amount paid to the employee for each completed item produced

    • e.g., 25 Rupees paid to workers in India for each pair of socks they produce

Performance-related pay (PRP)

  • Payment based on how well the worker performs

  • Workers doing exactly the same job may receive different compensation based on different outcomes they achieve

Share options

  • Payment through the issuing of shares in the company the employee works for

  • This is usually in addition to a monthly salary

  • The monetary value of the shares provided to the employee can be calculated on any given day as: number of shares x share price

Non-wage factors

  • Many different non-wage factors influence a worker's choice of occupation 

Circular diagram of non-wage factors: fringe benefits, education/training length, job security, satisfaction, career prospects, and challenge level.
Non-wage factors that can influence the choice of occupation

Fringe benefits

  • Benefits provided in addition to a normal salary, such as:

    • Childcare

    • Free lunches

    • Gym membership

    • Company car

  • These can be a significant influence on a person’s choice of occupation

Length of training or level of education required

  • Longer training or study requirements may discourage people from entering the occupation

  • Fewer workers are willing to invest the time and cost needed for lengthy qualifications.

    • For example, becoming a lawyer usually takes seven years of study and training

Job security

  • Stability of employment can be an important deciding factor

  • Some industries offer permanent contracts; others have short‑term contracts (e.g. 1–4 years)

  • Workers may avoid jobs in industries with high redundancy risk

Job satisfaction (enjoyment of work)

  • Enjoying work is a major contributor to overall job satisfaction

  • Workers often change jobs or careers to improve enjoyment and fulfilment

Career prospects

  • Occupations with clear pathways for promotion and skill development are more attractive

  • Opportunities for salary increases and advancement encourage workers to stay in or choose certain careers

Level of challenge

  • Some workers choose roles for the challenge and variety they offer

    • For example, firefighters often value the physical and mental challenges of their work

Status

  • Certain jobs carry high social recognition, which can be appealing.

    • For example, doctors, surgeons, and lawyers are often seen as prestigious professions

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    Author
    Reviewer
    Steve Vorster

    Author: Steve Vorster

    Expertise: Economics & Business Subject Lead

    Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.

    Lisa Eades

    Reviewer: Lisa Eades

    Expertise: Business Content Creator

    Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.