To go with my proposal for today, here's a proposal for my LJ.
Based on available data, pay is not based on "years of experience" for experience sake. Pay tends to go up linearly with experience while in reality you learn less every subsequent year of work (logarithmically). Furthermore, people who have MS and PhD degrees do not make more than people with more "years of experience" even though they know more (although they do make more once they have the same experience, but that is a different phenomena). Therefore, it seems pay is actually based on the inverse risk-averse model of probability of the employee seriously fucking up. If the employee has worked for more years without seriously fucking their employer over, each year has less and less probability of doing so. Employers pay on that basis rather than by measure of actual competency. Suggested further work: Look into why employees who have proven to be serious fuck-ups can still achieve the same pay rate.