Tuesday, April 29, 2014

High Demand for Flight Attendant Jobs

Bloomberg reports that the number of applications for new flight attendant jobs is greater than the supply of new flight attendant jobs, and the reason is not the wage or salary.  New flight attendants make around $25,000 per year.

In Prin. of Microeconomics, we would call this a compensating differential.  Typically I use this idea to explain why the night shift can pay higher than the day shift for the exact same job, but here is the situation in the reverse.  Since flight attendant job seekers prefer a job with travel, they will be willing to take a lower salary as opposed to a comparable type of job.

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