OLD THEORIES OF WAGES

OLD THEORIES OF WAGES  Subsistence Theory’ Several theories have been put forward to explain the general level of wages prevalent in a country. Take first the Subsistence Theory. This theory originated with the Hippocratic School of the French economists and was...

Why a Separate Theory of Wages?

Why a Separate Theory of Wages? It is demand and supply relationship or scarcity in relation to demand, which explains all values whether values of commodities or values of services of the factors of production. Why should we then have a separate theory of wages? The...

Is Labour A Commodity?

Is Labour A Commodity?  We have said that wage is the price of labour as if labour is a commodity. There is no doubt that labour has peculiarities of its own which differentiate it from other commodities (see next page) and labour protests against its being...

Extra Work Without Extra Payment

Extra Work Without Extra Payment If an employee is required to do extra work without any compensation. his real wages arc less by that extent. Peon, arc paid fur doing their duty during working hours, but quite often they are required to work late. For such extra work...

Nominal Wages vs. Real Wages

Nominal Wages vs. Real Wages  According to the classical wage theory, labour supply was considered a function of real wages, But according to Keynes, the workers acted irrationally and generally bargained for money wages and they sharply reacted against any cut in...

WAGES

WAGES Having studied the general theory of distribution, we are now in a position 10 – take up the study of the determination of the share of the factors of production separately. We shall first lake up wages followed by rent , interest and profit. Meaning of...