Analysis of Wage Structure - Assignment Example

Wages and profits are different in the employment of labor wherein in some organizations, workers have the freedom to choose what they want to do while in others, duties are assigned to employees.

However, many inequalities that arise from the nature of the employment, as identified by, Adam Smith need to be addressed to create harmony in the workplace. These principal counterbalances in some employment while in others, it is again. The first principle, the wages of labour vary with the hardship, the cleanliness, the honorableness of the employment. Those who carry out heavy duties earn more than those who undertake light duties. Additionally, dirtier work tends to fetch more wages than the clean ones and exposure to unsafe or dangerous environments (Smith and Dickey, 1993). The employees in dishonorable employment may take home more wages than those in honorable employment because it takes patience and courage to carry out the duties; however, this is not always the case in all employment. This also applies to the profits of stock the bigger the stock the more the profit it earns.

Secondly, the wages of labour vary with the easiness and cheapness, or the difficulty and expense of learning the business. If an employer requires a skilled person who has taken enough time to learn about it and used expensive resources, the level of wages must be high. This is because time consumed in training is great and not just anyone who can perform the duties, especially the specialized ones be it technical or technological. Skilled labour fetches more wages and as one upgrades the position is left vacant for another to join and learn as the latter continues with his/her training under the master just like it is in Europe (Smith and Dickey). Easiness and cheapness hardly affect the stock of profit because for any business to do well, a lot of effort must be employed.

Thirdly, the wages of labour in different occupations vary with the constancy or inconstancy of employment. Employment varies from one trade to the other where some are more constant than others. Some employments are almost more guaranteed than others. When the weather changes like raining a mason might not be able to carry out his/her work in a proper manner while those in food production are almost assured of a job because people must eat. When employment is constant, it makes a good deal of income than when it's not. Constancy and inconstancy of employment affect the profit of stock because it is dependent on the trader, not the trade itself (Smith and Dickey, 1993).

Fourthly, wages of labour vary according to the small or great trust to be reposed in the workers. Those who work in esteemed organizations and positions earn greater wages than organizations with low esteem since the esteem organizations seek highly trained individuals than the other type of organization. Similar to that inexpensive business of jewels including diamond and gold must trust their employees and pay them well so that they are not tempted to steal. Therefore, for a trade to flourish a trader must import labor of trusted people; however, trust does not affect the stock of profit.

The wages of labour in different employments vary according to the probability or improbability of success. This is not always the case because in some professions the probability of learning them is guaranteed. However, those who complete their courses successfully earn more wages because it pays for the skills and time taken to learn them. The profit of stocks in such employment depends mostly on the certainty and uncertainty of returns because of the risks involved (Smith and Dickey 1993). In other words, those who successfully complete their courses and duties usually get the real deal for endurance.

In conclusion, all the above circumstances that affect the rates of paid labour depend on the form of employment that varies from one employer and employment to the other and this brings about the counterbalance or small gains in others.

With skilled labor, the wages are high even with high demand and supply. As long as one is skilled, he/she will always get good wages. The market equilibrium is attained at the center and it is at an increasing rate. Wages for the unskilled keep on decreasing irrespective of the market demand and supply; thus, their poor pay.