2006-10-29 10:39:56 · 3 answers · asked by SWANY 2 in Social Science ➔ Economics
The same laws that determine the price of everything. Supply and demand. If there are many workers and few jobs then pay is low. If there are few workers and many jobs then the employers have to compete with other employers for workers and have to offer high pay and benefits to keep workers. At least that is how it should work. Sometime employers in a given field will make a "gentlemen agreement" amongst themselves to keep the pay the same across the industry to keep worker pay down and to prevent people from job hopping.
2006-10-29 10:45:13 · answer #1 · answered by Carlos D 4 · 0⤊ 0⤋
The maximum that an employer will pay is the marginal productivity of the worker. Under this amount answers 1 and 2 apply
2006-10-29 20:24:58 · answer #2 · answered by meg 7 · 0⤊ 0⤋
supply and demand plus the law. Can't pay less than minimum wage.
2006-10-29 19:03:38 · answer #3 · answered by David C 2 · 0⤊ 0⤋