In labor markets, the wages in each occupation are determined by

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The wages in each occupation are determined by the intersection of the labor demand curve and the labor supply curve. This is the point at which the quantity of labor demanded by firms equals the quantity of labor supplied by workers. This is also known as the equilibrium wage. Government regulation and workers and firms demanding/supplying jobs can influence these curves, but the basic principle is still the intersection of labor supply and demand. The job demand and supply curves are also relevant factors, but they represent the demand for and supply of jobs in general, rather than specific wages.

In Labor Markets, the Wages in Each Occupation Are Determined