A study on the major wage theories and their relevance
Summary :
Table of Contents
- An Introduction to the concept of wages
- What are wage theories?
- Substance theory of wages
- Surplus Value theory
- Wage Fund theory
- Residual Claimant theory
- Bargaining Power theory
- Marginal Productivity theory
- Efficiency theory
- Agency theory
- Expectancy theory
- Behavioral theory
- Equity theory
- Conclusion
- References
Abstract
Wages are income derived from human labor. Salaries are similar to wages, but denote a more routine and constant payment on a time bound basis, as opposed to a work-bound payment association of wages. The term wage and Salary encompass remuneration and fringe benefits sponsored by the employer, such as paid vacations, holidays, paid sick leaves, pensions, health insurance, and also bonuses or stock options usually linked to individual or group performance. Though wages and salaries thereby cover all compensation made to employees for either physical or mental work, they still do not represent the income of the self-employed. Total labor costs of an organization include items such as cafeterias, transportation, meeting rooms and other such employee related expenses incurred by the employer for the convenience of employees.
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