The paper "Economics Discussion" is an impressive example of a Macro & Microeconomics assignment. Indeed, one of the most overlooked discussions for the existing differences in income between workers lies in the concept related to the life cycle. It is affirmed that workers' income tend to grow spontaneously as workers mature and gain extensive work-related experiences and attain their overall peak at near retirement age. This is quite unfair for the younger workers that deserve even more remuneration especially since they are the most active and thus, productive in their work It is quite normal to expect that the aspects related to workers’ immediate pay and productivity to assume a positive correlation; however, this relationship tends to weaken as workers get near their retirement ages.
Research indicates that the aspect of mental health declines with the age and thus, it is illogical to pay old workers more as compared to the younger workforce whose level of education is sometimes unmatched (Aubert & Crepon, 2007). In fact, for fear that the old workers do not engage intensive education in their lifetime then it is expected that their respective old age will be even less productive for an entity. Of particular interest to note, Aubert and Crepon (2007) note that some of the workers’ immediate capabilities decline at a much faster rate in comparison to their colleagues. In essence, most studies indicate that people’ s numerical and reasoning capacities are their top-notch in the period between the early 20s and 30s (Aubert & Crepon, 2007).
In contrast, other capabilities like ones that focus on knowledgeable attributes like verbal abilities will certainly improve with the aspect of age and that indicates that one should therefore compensate the other in terms of pay. For most of the workers, declines capabilities will definitely result in a lower level of expected productivity rates; hence only a lower number will be able to acquire technical expertise; knowledge, and that capacity to press on despite different sets of pressure.
But even so, these attributes in most cases do not account for any returns or benefits considering the fact that experience counts more in determining the level of pay; and experience emanates from being an old worker.
The stipulation is, however; facing an imminent level of challenges especially since nowadays technological advancements seek to put a premium of aspects of adaptability while allowing a significant discount rate on matters experience. It is for this reason that even those younger workers that tend to outperform their productivity targets can only experience limited remuneration returns.
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