How to determine the level of salary
The cost of using labor is expressed in the amount of money and called wage rate. Wages can be monetary, real and nominal. Nominal wages - the amount of money received per unit of time, the real - the amount of goods or services that can be purchased for a nominal fee. Real wage purchasing power is nominal fee.
Instruction how to determine the level of salary
Real wages depends on nominal wages, as well as on the prices of goods and services. Changes in real pay for work can be determined as a percentage by grabbing the percentage change in the price level of change in nominal wages, also expressed as a percentage. Real and nominal payment is not always vary in the same direction, if nominal wage increases, while the real is sometimes reduced due to faster price increases.
Wages in different regions and different countries, in addition, its value also depends on the type of activity and differentiation - by sex and even race.
Salary may be general or average, it contains a range of specific rates. Demand for labor or other resource depends on the performance. The higher the performance, the greater the demand for the resource. The higher the demand, the higher the average level of real wages.
There is a close relationship between the release of products in working hours and hourly wages. Real income per capita grows at the same rate as output per worker. Release big the actual volume of 1 hour means the distribution of real income per hour.
But even with the high demand for labor, the increase in supply can cause a decrease in the general level of wages, for example, due to the increase of population. The level of wages is determined by supply and demand analysis.
Competitive labor market is characterized by a number of organizations competing with each other in the recruitment of specific labor, numerous skilled workers, as well as lack of control over the market rate salaries.
To determine the level of salary for a particular semi-skilled or skilled labor market and determine the total demand for the required type of work, summarizing the demand for labor on the horizontal curve.
To do this, draw a table. The first column label "units of labor", the second "rate of wages." The third column name "The total cost to pay" and the last "The marginal cost of the resource." Each bar filled in accordance with the available data on the type of activity.
Now add the data horizontally. The curve will rise gradually, reflecting the fact that during the absence of unemployment, organizations are forced to pay big bets in order to get more workers.