If the employer pays more, then it has two options. It can try to pass on the higher pay level through price increases or hold prices fixed and allocate a greater share of total revenues to cover labour costs”
For example: for many years automakers in the U.S. were able to pass on increased pay levels due to increased car prices. “While the competition between the Big Three existed, they all passed on the pay increases. But then the product market revolutionized. The degree of competition from Japan and Korea increased and due to the slowed economy, the total demand for cars declined.” Both of these factors constrained the firms’ ability to pay and their ability to change pay level. It response, some autoworkers took pay cut and smaller wage increases were accepted. “So the nature of the product demand and the degree of competition in the industry influence the pay level and the ability to change it over time.”

4.3 Geography
Another aspect which influences the wage level for particular job is geography, because qualifications interact with geography. “Some skills, such as those possessed by degreed professionals (accountants, engineers, physicians), are recruited nationally. Others (technicians, crafts and operatives) are recruited regionally and still others (office workers), locally. However, the geographic scope of a market is not fixed. It changes to respond to workers’ willingness or commute certain distance. This prosperity to be mobile in turn may by affected by personal and economic circumstances as well as the pay level established by an employer.”
For example the University of Žilina has technical orientations. It would be less possible to find not an engineer to perform some kind of work, in which technical skills are needed as in the city/region, where the particular University has not at least similar orientation. So in the Žilina will be the supply of technical engineers higher than in the second region. This aspect will determine the level of wages for engineers in the Žilina where the wages will be lower than in the second region. 4.4 Present level of wages
Present level of wages for particular occupations has influence to the future level of wages in this way: In today’s labour market is high demand for programmers so a lot of young people especially boys are studying programming, because they want to have after study high wages.