wage rate


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Related to wage rate: Minimum Wage Rate, Minimum wages

wage rate

the money payment made to a worker for each ‘unit’ of his or her labour input, usually measured either on hourly time basis (see WAGES), or for each unit of output produced (see PIECEWORK). See PAY, PAYMENT BY TIME, PAYMENT BY RESULTS, WORK STUDY.
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Fig. 196 Wage rate.

wage rate

the PRICE of LABOUR. In a competitive LABOUR MARKET, the wage rate is determined by the demand for, and supply of, labour. The demand curve for labour as a factor input is downward-sloping (D in Fig. 196), reflecting a fall in the marginal productivity of labour as more labour is used. The position and slope of the demand curve for a particular type of labour will depend upon the productivity of the workers concerned and the demand for, and PRICE ELASTICITY OF DEMAND for, the product that they make (see MARGINAL-PHYSICAL PRODUCT and MARGINAL-REVENUE PRODUCT). The supply curve (S) for labour is upward-sloping: the higher the wage rate, the greater the amount of labour offered.The position and slope of the supply curve for labour will depend upon the skills of the particular workers concerned and their occupational and geographic mobility. The equilibrium wage rate is We, where the two curves intersect.

In practice, supply and demand forces in the labour market are likely to be influenced by the bargaining power of TRADE UNIONS (see COLLECTIVE BARGAINING), which can affect the supply of labour, and, likewise, powerful employers and employers’ associations, which can affect the demand for labour, government labour market policies, such as MINIMUM WAGE RATE legislation and the stipulation of maximum hours of work, and government macroeconomic policies, such as PRICES AND INCOMES POLICY. For example, if monopoly trade union suppliers of labour or government minimum wage rate legislation were to establish a wage rate such as Wm in Fig. 196, then the effect would be to create UNEMPLOYMENT equal to Q1Q2. (See UNEMPLOYMENT for further discussion, especially ‘voluntary’ unemployment at the ‘going‘wage rate.)

References in periodicals archive ?
Unison has long campaigned for the real living wage rate to be paid across the whole Welsh public sector.
ii) Marginal costs of labour are always above the competitive wage rate [w.
Referring to various suggestions received from the States, Ramesh said, there is need for parity in the MGNREGA wage rate and the Minimum Wage, where the former is lower and there are 14 such States like Bihar Jharkhand, West Bengal and Rajasthan where rural job wage is lower than minimum wage.
Wagihi called for a constitutional article to be created which would implement a minimum but not maximum wage rate, as maximum wage rates differ depending on the institution.
The move to raise wage rates suggests that the government is starting to work on the living standards issue before the next election, as the economy shows signs of improvement.
Dr Adam Marshall, Director of Policy at the British Chambers of Commerce (BCC), said: We are disappointed that the government has chosen to raise the adult National Minimum Wage rate by 1.
The government on Monday announced a hike in the wage rate for workers under the Mahatma Gandhi National Rural Employment Guarantee Act ( MGNREGA), which is the pet project of Congress president Sonia Gandhi.
An implication of these findings is that they reflect an increase in the opportunity cost of leisure time relative to the wage rate, and a shift in, rather than a movement along, the supply curve.
In a sense, what is critical is not the real wage rate, but the real wage rate adjusted for productivity change.
The specific objectives of this paper are to: (1)analyze theoretically through illegal immigration and trade theory the effects of domestic and border enforcements on the illegal farm wage rate, commodity prices, unauthorized entry, and commodity trade between the United States and Mexico and (2) empirically implement the theoretical model through econometric estimation and simulation analysis and quantify the impacts of immigration policies on farm labor and commodity markets.
To illustrate the empirical orders of magnitude, earnings and wage rate function estimates and the distribution of earnings from the 2004 Chilean Social Protection Survey are used.
He importuned them to forego any money wage rate reductions in response to the depressed economic conditions, At the conclusion of the conference, the press release stated: