We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

What determines the distrbution of income between wages and profits - Essay Example

Comments (0)
Some of these expenses are - the production cost, marketing cost, and other sundry expenditure of fixed nature such as electricity, water supply and statutory taxes. The expenditure on wages…
Download full paper
What determines the distrbution of income between wages and profits
Read TextPreview

Extract of sample
What determines the distrbution of income between wages and profits

Download file to see previous pages... Consequently, the wages paid to the workers in the cinema theatre would reduce. An opposite scenario in this context would be that if the public transport is privatized, the wages paid to the bus conductors would possibly increase.
2. The bargaining power of the workers is another significant factor that plays a role in the determination of distribution of income between wages and profits. The point to be noted here is that bargaining power of the work force can be more important than their productivity.
3. Profits not only depend on the macro factors such as the country’s economy but they also depend on the cost of production which can be company/industry specific. For instance, some companies who believe in excellence would spend a lot on innovation, resulting into low cost of production and high profits. This could also result into high wages.
4. The wages paid would also depend on the size of the company and industry. If the company is growing in size, the wages paid would be high; similarly wages are of growing nature in sunrise industries. Companies who have maintained oligopoly in the market can also afford to pay high wages.
5. Fields such as Information technology and Finance are of revolutionary and innovative nature, so we find wages to be very high in these fields. Similarly companies in any industry such as biotechnology, weapons manufacturing and aerospace that are of innovative nature can afford to pay high wages to the workers.
6. Another important factor is the distinction between skilled and unskilled workers. Skilled workers certainly get paid more than unskilled workers. The point to be noted here is that skilled workers enable the company to make more profits.
7. Referring to the above point again, we can also conclude that skilled/unskilled workers working in the specialty and niche areas will be paid more than ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Minimum Wages
6 Conclusion 8 Reference 9 Introduction The different types of labor markets are skilled, semi skilled and unskilled markets. The workers skilled in a certain job are categorized in the skilled market while the unskilled workers fall under unskilled market.
6 Pages(1500 words)Essay
Monetary Policy Wages, Markets and Income
This is mainly determined by the interest rate. In return, the interest rate may be derived through the key economic indicators such as the inflation, unemployment rate and gross domestic product (GDP). In making these major decisions, the inflation is principally taken into account.
2 Pages(500 words)Essay
Minimum Wages
Despite escalation in productivity and inflation since 1968 there has not been a proportionate enhancement in minimum wage James Cicarelli, Since1968, 2003). The "living wage movement" owes it's genesis to the failed attempts by the legislative to effect greater parity between minimum wage and living wage.
2 Pages(500 words)Essay
Efficiency Wages
Combining the two effects, would the wage increase raise or lower output and welfare In other words, where and where not you would expect firms to pay efficiency wages That is the question this paper seeks to answer. Economists typically assume that the efficiency wage is too high and so leads to unemployment that is also too high.
8 Pages(2000 words)Essay
In theory, the deal between capital and labour is simple. Capitalists say to the workers: you help us lift profits and we will reward you with higher wages. Tha
However, after extensive reading of the topic discussed by Tomkins (2006), it would seem that Friedman was certainly right when he suggested
7 Pages(1750 words)Essay
Relationship between High School Drop Out Rate and Family Income
Though all the three are equally important to live well, formal education is the most important for knowledge-driven economy. It helps in job procurement and social cohesion and puts the economy of a
5 Pages(1250 words)Essay
Heredity determines personality

From this research, it is clear that heredity alone does not develop a personality, but in association with the environmental factors only develop, evolve and fine tune the personality of an individual. According to psychologists, the most reasonable answer of all is neither one, nor the other, but the interaction of the two - the genetic and the environmental/ educational/ experience factor.

2 Pages(500 words)Essay
Public transportation affects on the economy in terms of employment, wages, and business income in the usa
Spending money on public transportation helps to generate income for businesses involved in activities and operations such as public transportations, car manufacturing, and road
2 Pages(500 words)Essay
Wages v. Wages
The father, Aubry D. Wages, was required to pay child support to the mother. After the case was heard and a judgment was given, the mother got married to another husband and decided to relocate. They two newly wedded couple
1 Pages(250 words)Essay
Minimum Wages
It is a good move by the current government. Definitely workers need an appropriate amount of their earnings to enjoy their lives and more over the cost of living has been raised and
1 Pages(250 words)Essay
Let us find you another Essay on topic What determines the distrbution of income between wages and profits for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us