Tharun, as a veterinary surgeon, is likely to earn more than a cleaner because his job requires a higher level of skill and a longer period of training and education. This restricts the supply of qualified veterinary surgeons, while the supply of labour for cleaning jobs is much larger. The combination of a limited supply and a high demand for veterinary services drives up the wage for this profession.
Wage differentials between occupations can be explained by the theory of supply and demand in the labour market. A veterinary surgeon's job requires years of university education and specialised training. This creates a high barrier to entry, limiting the supply of people who can do the job. In contrast, cleaning is a low-skilled job with minimal training requirements, meaning there is a very large supply of potential workers. Given that there is demand for both services, the relative scarcity of veterinary surgeons compared to the abundance of cleaners leads to a much higher equilibrium wage for vets.
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