Who created the iron law of wages?

Who created the iron law of wages?

Ferdinand Lassalle

Who gave iron law of oligarchy?

The iron law of oligarchy is a political theory first developed by the German sociologist Robert Michels in his 1911 book, Political Parties.

What is subsistence theory?

The subsistence theory of wages explains wages from the supply side and ignores the demand side. 2. If all labourers must get the bare necessaries of life, all must get equal wages. But there are many differences in wages. Thus this theory ignores wage differences.

What is Ricardo's theory?

Comparative advantage, economic theory, first developed by 19th-century British economist David Ricardo, that attributed the cause and benefits of international trade to the differences in the relative opportunity costs (costs in terms of other goods given up) of producing the same commodities among countries.

What is wages fund theory?

wage theory The wage-fund theory held that wages depended on the relative amounts of capital available for the payment of workers and the size of the labour force. Wages increase only with an increase in capital or a decrease in the number of workers.

What is minimum wage in economics?

A minimum wage is the lowest wage per hour that a worker may be paid, as mandated by federal law. It is a legally mandated price floor on hourly wages, below which non-exempt workers may not be offered or accept a job.

What are the types of wages?

Types of Wages:

  • Piece Wages: Piece wages are the wages paid according to the work done by the worker. ...
  • Time Wages: If the labourer is paid for his services according to time, it is called as time wages. ...
  • Cash Wages: ADVERTISEMENTS: ...
  • Wages in Kind: ...
  • Contract Wages:

What are the factors determining wage?

Following factors influence the determination of wage rate:

  • Ability to Pay: ADVERTISEMENTS: ...
  • Demand and Supply: ...
  • Prevailing Market Rates: ...
  • Cost of Living: ...
  • Bargaining of Trade Unions: ...
  • Productivity: ...
  • Government Regulations: ...
  • Cost of Training:

Who is propounded the wage theory of profit?

Definition: Walker's Theory of Profit, also called as a Rent Theory of profit was propounded by F.A. Walker, who believed that profit is regarded as a rent of differential ability that an entrepreneur may possess over the others.

How does economic theory explain wage determination?

According to economic theory, workers' wages are equal to the marginal revenue product of their labor. If one employee is very productive he or she will have a high marginal revenue product. In reality, wages are determined not only by one's productivity, but also by seniority, networking, ambition, and luck.

What happens if minimum wage is below equilibrium?

If the equilibrium wage is below the minimum wage, however, then there will be a surplus of labor: at the artificially high minimum wage, aggregate demand for labor is lower than aggregate supply, meaning that there will be unemployment (surpluses of labor).

What four factors contribute to differences in wages?

Four of the most prominent factors that affect wage differentials are:

  • human capital.
  • working conditions.
  • discrimination.
  • government actions.

Can you sue for pay discrimination?

Sue (file a lawsuit against) your employer for pay discrimination. Under the federal Equal Pay Act and the California Fair Pay Act, you can go straight to court. You are not required to first file a charge with a government agency.

What is the difference between the highest and lowest salary in that occupation?

The 90th percentile wage is the point at which 90 percent of workers in an occupation made less than that amount and 10 percent made more. The difference between those two wages—the high earners and low earners in an occupation—is referred to here as the "wage difference."

Why should wages differ?

Why wages differ? Reasons for differences in remuneration: ... Demand factors: Firms producing goods and services which are high in demand usually pay better remunerations to their workers. Supply factors: Industries where there is a shortage of workers will usually pay higher remuneration to attract workers.

Is it illegal to pay someone less for the same job?

The Equal Pay Act doesn't allow your employer to pay you less than a coworker doing a similar job. Congress passed the EPA in 1963, mostly to ensure that women earn the same pay rates as men doing similar work. However, the law protects both genders.

Why some jobs are paid more than others?

We find that there are large differences in pay across firms, and that firms that pay higher wages than other firms primarily do so because they employ workers with different job titles.

What if everyone got paid the same?

If people were paid the same about for the same work output, then highly productive people would work much shorter hours and have much more time off, because they couldn't earn more money by working more. The probable answer is lower productivity, since there would not exist merit or rewards for the same work.