The current issue if Michael Nortons research is correct,
that people just don't know how they compare with
in terms of pay.
Well what if we include some statistics in taxation
for individuals to note in simple terms their ratio of pay
compared to other professions.
In addition they are
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,
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
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
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.