Why people don’t earn the same amount

Three mediating factors explain why some people earn more.

• Some career choices have a higher variance. A risky profession might return more as most people are risk-averse.
• Some career choices offer non-monetary benefits, like status, security, or entertainment.
• Some career choices require more talent, connections, or credentials. E.g., medicine is a lucrative profession. Most people won't desire it because it lacks endurance, aptitude and years of training.