The labor market is dynamic and one which involves the interplay of myriad factors. There exist vast disparities in wages is as a result of a combination of factors such as industry or employment, geographic location as well as workers skill and competency. Everyone brings distinct skills and abilities in a profession. Variation affects pay for jobs within the same occupation. These differences are responsible for huge wage disparities. Occupations with less variability among workers and employment may have smaller wage differences. Robert Downey Junior the Hollywood’s actor, for example, is the highest-paid actor. According to Forbes magazine, Robert earned an average of £51.2 ($80) million over the period of June 2014 and June 2015. He was closely followed by actors such as Jackie Chan, Vin Diesel, Bradley Cooper as well as Adam Sandler made to the top five in the list. From this list, the one question that comes to the mind, is why are are some jobs highly paid while others are not? The disparities can be explained by the factors such as professional certification, experience, and skill, industry or employer, job tasks, geographic location as well as performance. Some profession is extremely competitive and only have relatively a small number of proletariats who earn huge incomes. An analysis of the total annual earnings of employees in the retail industry showed that revenues increased steadily with a positive increasing trend between the year 2010 to the year 2016. Though at first, it declined from the year 2009 to 2010, it nevertheless increased afterward.
Speculations have it that hedge fund leaders are among the based paid and one report shows that in 2013, their average salary was $467M. The reason why hedge fund executives earn much compared to the chosen labor group is that is because hedge fund managers have significant startup capital in the fund and since they engage experienced investors who help them grow and manage the asset base. Moreover, hedge fund leaders deliver exceptional performance through investment in the hedge options that generate an alpha that is way above market returns.