Labour market and wages

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2020-07-03 03:43:08

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The Most important and most frequently used form of the income of a market economy of any country – salary, it definitely reflects many of the economic processes taking place in the state.

The labor Market and wages are interrelated. Salary means the price of labor or income that the employee receives for the work per unit time. Wages may be of several types. First, there is nominal wage – this is the wage that a worker receives for his labor. Secondly, there is such a thing as real wages, which is inversely proportional to the price level, that is, the set of goods and services a worker can purchase in their nominal wages. It happens that the nominal wage increases and real decreases due to the rapid price increases.

The labor Market and wages are often treated together because the wage level is determined in the market. In the labour market is determined by the cost of labor, conditions of employment of workers, working conditions, job security and more education, and more. Moreover, the labour market clearly reflects the extent of unemployment and mobility of labour.

 As in any other markets, the labor market there is demand there is offer. The demand is based on the needs of employers to close vacant positions in the organization, and offer, respectively, is determined by the unemployed labor force or change jobs. The market supply of labor depends on the population, especially of working age, qualification of workers, the duration of annual working time, etc. On demand have the impact of scientific and technological progress, the state of the economic conjuncture, etc.

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Supply and Demand are in competition, for example, in a good position there are always several candidates who may be asked to undergo testing for acceptance for work. Sometimes Vice versa, when valuable and qualified employee demand in several companies, and they offer higher wages or better working conditions to “lure” to him. That is the relationship of the labor market and wages.

There is such a thing as the value of marginal product of labor. The number of hired employees is determined by salary and the cost. The acquisition of new units of labour will cease as soon as the wage will equal the value of marginal product. It is another feature of the chain is “the labor market and wage”.

The Russian labor market because of their specificity has many classifications. Consider some of them. If we consider a time component in relation to the labour market, it is possible to highlight the current, prospective, potential, and projected markets.

In addition, in the context of a market economy we can talk about a regulated and unregulated market. If the market is not regulated, the workers almost no social protection, no employment security and labor protection, while  in a regulated market there is an extensive regulatory framework and the state plays a leading social role.

There are also market physical labor, mental work, creative work, market, farm labour, etc. balance between supply and demand the market may be in equilibrium, excess and deficient.

There are also internal and external labor market. The external market is determined by the mobility of labour between States, enterprises and organizations, the domestic market involves the movement of personnel within the organization, internal job rotation. The latter is based on the principle of ‘values and skills”, when the company formed a “core” of high quality, permanently working professionals and “periphery”.

This classification is based the division of the market into primary and secondary. The primary market is offered high-paying jobs and good working conditions in the secondary – low salaries, instability, and poor working conditions.


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ZH: https://www.tostpost.com/zh/business/41902-labour-market-and-wages.html






Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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