Wage Differentials Between Occupations and the Gender Pay Gap

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• identifies that pilots have a higher marginal revenue product, e.g. because flying an aircraft directly enables the flight (high value output) with few close substitutes for the skill.1 mark
• develops this, e.g. very few workers are trained and licensed to fly commercial aircraft, so the supply of pilots to the labour market is low relative to demand.1 mark
• identifies that check-in staff have a lower marginal revenue product and/or that the supply of workers able to do check-in work is large relative to demand, since little specific training is required.1 mark
• develops this, e.g. with many available substitute workers, competition between applicants keeps the equilibrium wage for check-in staff low.1 mark
• notes that training and licensing requirements restrict pilot labour supply, raising the equilibrium wage.1 mark
• draws the analysis together, concluding that a higher MRP (demand side) combined with a lower relative supply gives pilots a higher equilibrium wage than check-in staff.1 mark

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• Limited or inaccurate knowledge of gender pay gap reporting or its causes; no clear application or analysis.4 marks
• Accurate knowledge of what gender pay gap reporting requires (large employers publishing their median and mean gender pay gap figures annually); some relevant application; one undeveloped chain of analysis.4 marks
• Constructs a developed chain of analysis showing how transparency could close the gap, e.g. reputational pressure encourages firms to review pay structures and promotion practices; begins to evaluate by weighing this against a counterargument.4 marks
• As Level 3, with a well-substantiated two-sided evaluation and a supported final judgement on how much of the gap reporting alone is likely to close.4 marks
• Specific content that can gain credit: reporting only covers employers with 250 or more staff, so it misses most small and medium employers; reporting requires disclosure of pay gaps but imposes no legal target to reduce them, so there is no direct enforcement mechanism; transparency can shift firm behaviour through reputational and recruitment pressure; it does not by itself address underlying causes such as occupational segregation, the unequal division of caring responsibilities, or the cost and availability of childcare; complementary policies could include shared parental leave reform, subsidised childcare, or stronger equal pay enforcement; a supported judgement should state that reporting alone is likely to have only a partial effect because it addresses visibility of the problem rather than its structural causes.4 marks

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