Other than to make things cost a hell of a lot more.
2007-08-08 04:18:39 · 2 answers · asked by Erwin F 1 in Social Science ➔ Economics
Prevailing wage rate is what is prevalent based on demand for and supply of labour. If productivity is strictly linked with any such wage rates, there may not be a situation you anticipate to emanate as goods so produced will get rightly priced based on supply and demand!
2007-08-08 05:19:40 · answer #1 · answered by Sami V 7 · 0⤊ 0⤋
A prevailing wage is not a bad thing. But, I think you're refering to minnimum wage. On should take note: minnimum is not a PREVAILING wage. The prevailing wage for these workers is obviously below minnimum wage. If not, these workers would get paid more than what they make. However, sometimes corporations pay on efficiency wage. This can be smart business. However, efficient wages would never worker in minnimum wage jobs. Those jobs are very easy. A 5 year old could perform those task.
2007-08-08 14:02:22 · answer #2 · answered by Anonymous · 0⤊ 0⤋