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Ratio of pay shown in tax return slip

 
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The current issue if Michael Norton’s research is correct, is that people just don't know how they compare with others in terms of pay.

Well what if we include some statistics in taxation receipts for individuals to note in simple terms their ratio of pay compared to other professions. In addition they are shown what's the average pay scale for the industry. This might help to correct this information asymmetry.

By knowing what's the average payscale for the industry, as well as how their pay ranks as a ratio to other job and industries, people in general will be able to negotiate a reasonable pay scale based on their actual skills/experience as opposed to how ignorant they are of the actual industry average pay (by definition, any employers taking advantage of this information asymmetry, is exploiting the employee at the advantage position. Thus economic power flowing towards the employer, is increased to the detriment of the employee.).

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Also it save companies money, if they can point out to the worker's tax receipt, if a worker (for example a CEO) says they want a pay raise. Since the company can point to the pay ratio, and ask "do you really work xMULTIPLIER times harder compared to INSERT_PROFESSION worker?"

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edit: To address FlyingToaster. Granularity of information provided is a tricky balance. Should we flood people with the whole picture? Or abstract it away a bit? Your point about how pay in the same category, will differ between towns is important as well. And will need to be taken into consideration as well.

mofosyne, Sep 28 2014

Americans Have No Idea How Bad Inequality Really Is http://www.slate.co...usiness_school.html
[mofosyne, Sep 28 2014]

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       A few aeons ago I worked on the contracts software for the province's police association (union). The job title "detective"(say) in Toronto (pop 3.5m) is a different job and has an entirely different pay/benefits scale than a "detective" in Timmins (pop 50k).
FlyingToaster, Sep 28 2014
  

       As a supporter of free market capitalism I must say I'm not enamored with the Harvard/Princeton/Yale class getting 300 times what its workers do. I'd just like to hear some solutions that don't require massive taxation that gives all the money to government so they can keep it themselves or use it to buy more votes for their party. Then you also get into the welfare state solution that locks people into horrible, soul scorching poverty.   

       How about executive taxation above a particular point going back to the workers of the company?   

       Hey, maybe I'll post that idea.
doctorremulac3, Sep 28 2014
  
      
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