Abstract

Abstract This chapter details the economic theory of net advantages, which is central to setting the pay of frontline health and social care workers. It details the basic economic principles which should underpin how health and social care workers are paid. It explains how job characteristics affect pay and identifies the very distinctive characteristics of the jobs that frontline workers do which will affect what they are paid. It explains why frontline workers’ pay should be related to the time they spend at work, not what they produce, and why pay should increase incrementally during early years of work. It further explains why frontline workers’ pay should vary according to the area of the country in which they work. It discusses measures of labour shortage, details vacancy rates, and documents the extent of shortage in key occupations.

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