The limits of schooling

Overpaid executives have become the flogging horse in times of recession, maybe rightly so. Reduction in salaries has been a usual recourse for “cost management” in many companies. It is not known whether these companies analyze why costs are high in the first place. Why are some employees paid a higher premium than the rest? Why are some employees recruited at higher costs while the rest are accommodated at a lower cost? It is understandable that employees “richer” by experience cost more than the rest. Apart from experience, schooling also has been a major factor in the pricing of employees.