Companies that Offer Jobs at Below the Market Wage Can't Find Workers

December 13, 2011

That is what NPR told listeners in a story about AAR Corp on Morning Edition. It told listeners that AAR, which hires mechanics to maintain planes, has had great difficulty attracting workers. According to the piece, its starting wages are between $12-15 an hour ($24,000-$30,000 a year), with wages topping out at $28 an hour ($56,000 a year). It didn’t give any information about benefits.

The piece indicated that these are jobs that require a fair amount of skill and involve a considerable degree of responsibility on the workers’ part. The piece also noted that competitors often pay $5-$10 more an hour.

In other words, AAR is effectively offering to pay doctors $40 an hour ($80,000 a year) and finding few takers. It is not clear whether this should be taken as evidence of a shortage of doctors.

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