Wage Disparity

Wage Disparity

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Introduction

Wages is the term that is used in economic theory , may be defined as remuneration for human services utilized in the process of production In this broad sense , the term includes salaries and in the aggregate represents the share of the to labor , including all human services , as a factor of production Wages , for most part , represent contractual payments by the owners of business enterprise to individuals in return for various types of services rendered , although the economist would

identify a part of the aggregate income of the self-employed businessman as a wage , since it represents compensation for his services

Distinctions of Meaning

The distinction between wages and salaries is based primarily on the method of computing payments : wages are computed on an hourly or piece rate basis , whereas salaries are generally computed weekly , monthly or annually . In observation , nevertheless this dissimilarity is not an apparent cutback . It is also customary to consider wages as the compensation of employees below the rank of supervisor . Wage rates refer to specified payments for a definite unit of time or unit of output whereas earnings represent actual receipts and vary with changes in wage rates , with the number of hours worked , and overtime payments . There is also the distinction between real wages and money wages . Real wages represent the purchasing power of money wage which is influenced by changes in the prices that wage...