concept of wages - Skyline E-learning site

WAGES, Wages may be defined as the: made to labour for the services they are in production. In other words, wages are the rewards paid for the services of labour. During the discussion on factors of ion, it was stated that the reward is wages. Wages are the price of labour. Wages refer to the compensation or payment that an employer pays to an employee for the work they have performed. Wages can be paid on an hourly, daily, weekly, or monthly basis, and can vary depending on the industry, location, and level of experience of the employee. In some cases, wages may also include benefits such as health insurance, retirement plans, and paid time off. It’s important to note that wages are different from salaries, which are typically paid to employees on a regular basis regardless of the number of hours worked.

Types of wages

Nominal wages: Nominal wages refer Ho the total amount of money paid to a labourer at a particular period of time. Nominal wage, also called money wage, is the total amount of money paid to labour at a stated or stipulated period of time. It is measured in monetary terms.
Real wages: Real wages refer to the total amount or quantity of goods and services the labour can use his money to buy. Real wage refers to the purchasing power of labour.

Wage Rate

Definition: Wage rate may be defined as the at which labour is paid for the services it in production.

Types of the wage rate

Time rate system: The time rate system type in which wages paid to labour are on the number of hours worked. Time-rated wages apply to workers whose wages are paid on an hourly, daily, fortnightly or monthly basis.

A situation where a time rate system can be applied

Where the quantity of work done is not easy to measure.
Where the quality of work done is more important than the quantity.
Where employees will require the supervision of the employer to get the full value of their wages.
Where certain jobs may not be done for a longer period of time due to their health implications.
Where incentives to workers are not necessary.
Piece rate system: The piece rate system is concerned with the wages paid to labour based on the

work done. In this system, payment to workers is related to the work done or output. The

the output of the worker is measured and he is accordingly rewarded.

Situations where the piece rate system is applied

Where supervision may not be necessary.
Where output can easily be measured.
Where large-scale production is expected.
Where incentives to workers are encouraged.

FACTORS RESPONSIBLE FOR VARIATION IN WAGES

The factors responsible for the differences in wages are as follows:

Differences in cost of training: Professions that are costly or expensive to execute in the course of training tend to attract higher wages than those with cheaper costs of training.

Differences in period of training: Some professions attract longer periods of training, e.g. the medical profession, and therefore attract higher wages.
Skill needed at work: Some professions that require special skill during training tend to have higher wages than those that do not require any skill.

Activities of trade unions: Some trade unions determine what their members have to be paid, e.g. chartered accountants and this tends to make them earn higher wages.

Forces of supply and demand: When the demand for a particular labour is higher than the supply, such labour tends to receive higher wages
Level of productivity: It is assumed that in an ideal situation, the more a worker becomes productive, the higher his wages will be and vice versa.

Differences in hours of work: It is also assumed that in an ideal situation, the longer the number of hours worked, the higher the wages, especially when the piece rate system is used.

Level of risk associated with a job: Certain jobs, e.g. piloting, petroleum engineering, etc involve greater risks when in operation and therefore are associated with higher wages.
Entry qualification: Certain professions require tough qualifications and lengthy years of training, e.g. medical doctor and lawyer, which tend to attract higher wages while those with little or no entry qualifications tend to receive wages.

The prestige associated with jobs: jobs attract high prestige from the s e.g. medicine, law and engineering; they, therefore, attract higher wages in those with low prestige receive wages.

DETERMINANTS OF WAGES

Wages can be determined through the foil

The forces of demand and supply in a market economy.
Government activities and policies
The activities of trade unions.

The forces of demand and supply in a market economy: The wages of a labour market economy can be determined through forces of demand and supply.

In a competitive labour market, there are many employers and unorganized employees resulting in a situation where a single employer or employee cannot influence the wage rate either by refusing to employ or to employ. Wages in a competitive labour market can be determined in the following manner.

When the supply of labour exceeds demand, the wage rate will fall.
When the demand for labour exceeds supply, the wage rate will rise.
When the demand for labour equals supply, wage rate will favour both the employer and the employee. The determination of wages by de and supply can be demonstrated by the graph.

(b) Government activities and policies

Government institutions and wage commissions set up by the government help in determining wages, especially in public services. In fixing wages, the government agency or wage commission takes the following factors into consideration.

Cost of living: The higher the cost of living, the higher wages are likely to be. If workers spend much to get the essentials of life, then there is a need to pay workers higher wages to enable them to meet up.

Level of productivity: The greater the level of production in the country, the higher the wage rate.

Type of occupation: The wage structure varies from one occupation to another. The wage structure for each category of labour, the risk involved, etc. Therefore, various salary levels are fixed for different categories of labour in the civil service.

60. DISEASES AND PESTS OF CROPS
61. MAIZE SMUT
62. RICE BLAST
63. MAIZE RUST
64. LEAF SPOT OF GROUNDNUT
65. COW-PEA MOSAIC
66. COCOA BLACK POD DISEASE

A mixed economy is an economic system that combines elements of both market and command economies. In a mixed economy, there is a mix of private enterprise and government control of the economy, with the government regulating and guiding economic activity to achieve certain social goals.

In a mixed economy, the government typically plays a role in areas such as education, healthcare, social welfare, and infrastructure. The private sector, on the other hand, is responsible for producing goods and services, and for competing with other firms in the marketplace.

The advantages of a mixed economy include the ability to balance the needs of the market with the needs of society, the ability to address market failures and ensure the provision of public goods and services, and the ability to promote economic stability and social welfare.

However, there are also disadvantages to a mixed economy. Too much government intervention can discourage entrepreneurship and innovation and can result in bureaucratic inefficiencies and excessive regulation, which can stifle economic growth and innovation. In addition, in a mixed economy, the government may allocate resources based on political considerations rather than market forces, leading to inefficient allocation of resources.

Overall, finding the right balance between government control and private enterprise is key to ensuring that a mixed economy functions efficiently and equitably.

Types of wages

Wage Rate

Types of the wage rate

FACTORS RESPONSIBLE FOR VARIATION IN WAGES

DETERMINANTS OF WAGES

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