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by michaelt 1594 days ago
When I graduated with my degree in electronics, I found the software industry paid much more than the electronics industry, so I entered the software industry.

If the electronics industry wants to hire me, they would have to pay higher salaries. So the salaries in one industry (software) can drive up salaries in another (electronics)

Admittedly, nobody's leaving programming to become a miner - but plenty of jobs pay less than mining, so it could explain a pay gap in some parts of the salary range. Especially in countries like Australia with big resource extraction industries.

1 comments

Yes, a salary raise in industry A will lead to a salary raise in industry B. Industry B has no option to stop hiring people altogether, so they have to hire at the higher wage level.

But a gender gap in industry A will not lead to an gender gap in industry B. Industry B will just hire the cheaper gender until industry B has no gender gap.