Productivity of labor and increasing wages for workers

Related BrainMass Solutions

• marginal productivity theory

  When governments change minimum wages they are not changing the productivity of labor.

• The demand for labor

  Why is it that wages are not dropping instead they are inching upward on a year to year basis? Hello! The demand for labor depends primarily on the value of the marginal productivity that the workers add to the firms.

• Demand: Utility and Marginality

  Increases in the technological stock of a specific economy affects labor by increasing the demand for those workers suitable trained.

• Productivity, Inflation

  Thus, equilibrium GDP may decline with increasing productivity. The employment of fewer workers means less demand for goods and services.

• Wage differentials between developed and developing countries

  Because there are relatively few workers, wages increase more than if there were many of them. The most important factor bringing about the higher wages is the increased productivity.

• The marginal product of labor

  When a lot of capital and little labor are used, the marginal productivity of labor is relatively great and the marginal productivity of capital relatively small. One unit of labor will substitute for a relatively large amount of capital.

• How to increase real wages?

  Increasing Inequality: What are the options for raising real wages? Impact of increasing inequality: There are several effects of increasing inequality.

• Real wages

  During the economic expansion of the late 1990's, wages increased significantly for all types of workers.

• Productivity and real wages

  When some segments of the economy grow rapidly, and workers in those segments receive higher wages, workers throughout the economy will likely also attain higher wages, even if they aren't more productive.