what are the different types of wages?

Answer 1

Well, there are all different types of wages. I will list a few of the most common ones that you will hear about in economics.

Equilibrium wage: This is the wage that will be paid in the free market, assuming no outside influence tampers with it. Supply and demand for labor determine this wage, and at this wage, everyone who wants to work for this amount will have a job.

Minimum wage: This wage is essentially a price floor. It is set at a certain level and is the minimum that can be paid to labor. If the price is set above the equilibrium price, there will be a shortage of jobs and not everyone who wants to work at that price will be able to find employment.

Living wage: This is the wage that is essential to support a lifestyle. There is no clear cut level for this as it would likely vary depending on the individual asked.

Unemployment wage: This is the wage that an individual in society will receive simply for doing nothing. If this wage is close to the equilibrium or minimum wage, there can be problems, as individuals would much rather prefer to sit around and make the same amount of money as they would if they had to work.

There are probably others, but these are a few of the common ones. Hope it answers your question.