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What factors determine wages and why?

Updated: 9/17/2023
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11y ago

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Wages are affected by the costs of production, expenses such as land and materials; the more expensive those are, the less margin is available to create a profit. The available labor pool affects wages because the more people there are competing for a job, the more willing workers are to take a lower wage. Wages earned at other jobs also have an effect because employers need to make their jobs more attractive than others.

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11y ago
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Q: What factors determine wages and why?
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