Question

Why is it that the average pay is higher in some parts of the UK than other?

Answer 1

Answer:

Bigger cities have more opportunities, have a more developed public sector that pays more and have more frequent economic activity.

Explanation:

• Difference between public and private sectors – some regions have a stronger public sector and a bigger need for it, and the wages in the private sector are generally lower. The recession affected the private sector very much in 2008, and also the skills and occupations needed are not the same. The cities and towns which have more need for public sector employees tend to generally have higher average pay.
• Economic activity – the large cities, like London, have higher economic activity and processes. The network that a person in the city creates is wider than people in rural areas, which means the individual spends more and earns more to cover the expenses.
• Companies and investors are more attracted to bigger cities – the investors are likely to place money and start the business in London than smaller towns, and therefore will create more job opportunities and economic processes. High-paying companies will first look into the prospects of starting a company in an area that is populated and has more economic activity.