Wage - wikipedia Wage For other uses, see Wage ( disambiguation ). This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. ( October 2009 ) Personal finance Credit Debt Mortgage Car loan Credit card Unsecured personal loan Rent - to - own Student loan Pawn Title loan Payday loan Refund anticipation loan Refinancing Debt consolidation Bankruptcy Employment contract Salary Wage Salary packaging Employee stock option Employee benefits Retirement Pension Defined benefit Defined contribution Social security Business plan Corporate action Personal budget Financial planner Financial adviser Stockbroker Financial independence Estate planning See also Bank Cooperative Credit union A wage is monetary compensation ( or remuneration, personnel expenses, labor ) paid by an employer to an employee in exchange for work done. Payment may be calculated as a fixed amount for each task completed ( a task wage or piece rate ), or at an hourly or daily rate ( wage labour ), or based on an easily measured quantity of work done. Wages are part of the expenses that are involved in running a business. Payment by wage contrasts with salaried work, in which the employer pays an arranged amount at steady intervals ( such as a week or month ) regardless of hours worked, with commission which conditions pay on individual performance, and with compensation based on the performance of the company as a whole. Waged employees may also receive tips or gratuity paid directly by clients and employee benefits which are non-monetary forms of compensation. Since wage labour is the predominant form of work, the term `` wage '' sometimes refers to all forms ( or all monetary forms ) of employee compensation. Origins and necessary components Wage labour involves the exchange of money for time spent at work ( the latter quantity is termed labor power by Marx and subsequent economists ). As Moses I. Finley lays out the issue in The Ancient Economy : The very idea of wage - labour requires two difficult conceptual steps. First it requires the abstraction of a man 's labour from both his person and the product of his work. When one purchases an object from an independent craftsman... one has not bought his labour but the object, which he had produced in his own time and under his own conditions of work. But when one hires labour, one purchases an abstraction, labour - power, which the purchaser then uses at a time and under conditions which he, the purchaser, not the `` owner '' of the labour - power, determines ( and for which he normally pays after he has consumed it ). Second, the wage labour system requires the establishment of a method of measuring the labour one has purchased, for purposes of payment, commonly by introducing a second abstraction, namely labour - time. The wage is the monetary measure corresponding to the standard units of working time ( or to a standard amount of accomplished work, defined as a piece rate ). The earliest such unit of time, still frequently used, is the day of work. The invention of clocks coincided with the elaborating of subdivisions of time for work, of which the hour became the most common, underlying the concept of an hourly wage. Wages were paid in the Middle Kingdom of Ancient Egypt, Ancient Greece, and Ancient Rome. Determinants of wage rates Depending on the structure and traditions of different economies around the world, wage rates will be influenced by market forces ( supply and demand ), legislation, and tradition. Market forces are perhaps more dominant in the United States, while tradition, social structure and seniority, perhaps play a greater role in Japan. See also : Efficiency wage Wage differences See also : Gender pay gap and Wage theft Even in countries where market forces primarily set wage rates, studies show that there are still differences in remuneration for work based on sex and race. For example, according to the U.S. Bureau of Labor Statistics, in 2007 women of all races made approximately 80 % of the median wage of their male counterparts. This is likely due to the supply and demand for women in the market because of family obligations. Similarly, white men made about 84 % the wage of Asian men, and black men 64 %. These are overall averages and are not adjusted for the type, amount, and quality of work done. Wages in the United States Historical graph of real wages in the US from 1964 to 2005. See also : Minimum wage and Minimum wage in the United States Seventy - five million workers earned hourly wages in the United States in 2012, making up 59 % of employees. In the United States, wages for most workers are set by market forces, or else by collective bargaining, where a labor union negotiates on the workers ' behalf. The Fair Labor Standards Act establishes a minimum wage at the federal level that all states must abide by, among other provisions. Fourteen states and a number of cities have set their own minimum wage rates that are higher than the federal level. For certain federal or state government contacts, employers must pay the so - called prevailing wage as determined according to the Davis - Bacon Act or its state equivalent. Activists have undertaken to promote the idea of a living wage rate which account for living expenses and other basic necessities, setting the living wage rate much higher than current minimum wage laws require. The minimum wage rate is there to protect the well being of the working class. Definitions For purposes of federal income tax withholding, 26 U.S.C. § 3401 ( a ) defines the term `` wages '' specifically for chapter 24 of the Internal Revenue Code : `` For purposes of this chapter, the term `` wages '' means all remuneration ( other than fees paid to a public official ) for services performed by an employee for his employer, including the cash value of all remuneration ( including benefits ) paid in any medium other than cash ; '' In addition to requiring that the remuneration must be for `` services performed by an employee for his employer, '' the definition goes on to list 23 exclusions that must also be applied. See also Compensation of employees Employee benefit ( non-monetary compensation in exchange for labor ) Employment Labour economics List of countries by average wage Performance - related pay Wage labour Wage share Real wage List of sovereign states in Europe by net average wage Marginal factor cost Overtime Political science : Labour power Proletarian Working class Wage slavery References Jump up ^ Finley, Moses I. ( 1973 ). The ancient economy. Berkeley : University of California Press. p. 65. ISBN 9780520024366. Jump up ^ Thompson, E.P. ( 1967 ). `` Time, Work - Discipline, and Industrial Capitalism ''. Past and Present. 38 : 56 -- 97. JSTOR 649749. doi : 10.1093 / past / 38.1. 56. Jump up ^ Dohrn - van Rossum, Gerhard,, ( 1996 ). History of the hour : Clocks and modern temporal orders. Thomas Dunlap ( trans. ). Chicago : University of Chicago Press. ISBN 9780226155104. Jump up ^ Ezzamel, Mahmoud ( July 2004 ). `` Work Organization in the Middle Kingdom, Ancient Egypt ''. Organization. 11 ( 4 ) : 497 -- 537. ISSN 1350 - 5084. doi : 10.1177 / 1350508404044060. Retrieved 2014 - 02 - 13. ^ Jump up to : Finley, Moses I. ( 1973 ). The ancient economy. Berkeley : University of California Press. ISBN 9780520024366. Jump up ^ ( 1 ) -- Education 2020 Homeschool console, Vocabulary Assignment, definition entry for `` wage rate '' ( may require login to view ) Jump up ^ Magnusson, Charlotta. `` Why Is There A Gender Wage Gap According To Occupational Prestige ?. '' Acta Sociologica ( Sage Publications, Ltd. ) 53.2 ( 2010 ) : 99 - 117. Academic Search Complete. Web. 26 Feb. 2015. Jump up ^ U.S. Bureau of Labor Statistics. `` Earnings of Women and Men by Race and Ethnicity, 2007 '' Accessed June 29, 2012 Jump up ^ `` Employees '' as a category excludes all those who are self - employed, and this statistics only considers workers over the age of 16. U.S. Department of Labor. Bureau of Labor Statistics ( 2013 - 02 - 26 ), Characteristics of Minimum Wage Workers : 2012 Jump up ^ Tennant, Michael. `` Minimum Wage The Ups & Downs. '' New American ( 08856540 ) 30.12 ( 2014 ) : 10 - 16. Academic Search Complete. Web. 26 Feb. 2015. Jump up ^ USC 26 § 3401 ( a ) Further reading Galbraith, James Kenneth. Created Unequal : the Crisis in American Pay, in series, Twentieth Century Fund Book ( s ). New York : Free Press, 1998. ISBN 0 - 684 - 84988 - 7 External links Look up wage in Wiktionary, the free dictionary. Wikimedia Commons has media related to Wages. Wikiquote has quotations related to : Wage Lebergott, Stanley ( 2002 ). `` Wages and Working Conditions ''. In David R. Henderson ( ed. ). Concise Encyclopedia of Economics ( 1st ed. ). Library of Economics and Liberty. CS1 maint : Extra text : editors list ( link ) OCLC 317650570, 50016270, 163149563 U.S. Bureau of Labor Statistics Wealth of Nations -- click Chapter 8 Understanding Capitalism Part III : Wages and Labor Markets -- Critical of capitalism U.S. Department of Labor : Minimum Wage Laws -- Different laws by State Average U.S. farm and non-farm wage LaborFair Resources -- Link to Fair Labor Practices The Truth Behind Wages in Mining -- How Wages are measured and Current Standards for Mining Professionals Database Central Europe -- Data on average wages in Central Europe and in Emerging Markets Salary and wages data collection -- Salary and wages data collection Prices and Wages library guide - Prices and Wages research guide at the University of Missouri libraries Employment Classifications Casual Contingent Full - time Part - time Self - employed Skilled Independent contractor Temporary Tenure Unskilled Wage labour Hiring Application Background check Business networking Contract Cover letter Curriculum Vitae ( CV ) Drug testing e-recruitment Employment counsellor Executive search Induction programme Job fair Job fraud Job hunting Job interview Labour brokering Overqualification Onboarding Personality - job fit theory Person - environment fit Probation Reference Résumé Simultaneous recruiting of new graduates Underemployment Work - at - home scheme Roles Co-op Employee Employer Internship Job Permanent Permatemp Supervisor Volunteer Worker class Blue - collar Gold - collar Green - collar Grey - collar Pink - collar White - collar Career and training Apprenticeship Avocation Career assessment Career counseling Career development Coaching Creative class Education Continuing education Continuing professional development E-learning Employability Further education Graduate school Induction training Initial Professional Development Knowledge worker Licensure Lifelong learning Practice - based professional learning Professional association Professional certification Professional development Professional school Reflective practice Retraining Vocational education Vocational school Vocational university Mentorship Occupational Outlook Handbook Practice firm Profession Tradesman Vocation Attendance Break Career break Furlough Gap year Leave of absence Long service leave No call, no show Sabbatical Sick leave Time clock Schedules Four - day week Eight - hour day Flextime Overtime Retroactive overtime Shift work Telecommuting Working time Workweek and weekend Wages and salaries Income bracket Income tax Living wage Maximum wage National average salary World Europe Minimum wage Canada Hong Kong Europe United States Progressive wage Singapore Overtime rate Paid time off Performance - related pay Salary Salary cap Working poor Benefits Annual leave Casual Friday Day care Disability insurance Health insurance Life insurance Parental leave Pension Sick leave Take - home vehicle Safety and health Epilepsy and employment Human factors and ergonomics Industrial noise Protective clothing Occupational burnout Occupational disease Occupational exposure limit Occupational health psychology Occupational injury Occupational stress Repetitive strain injury Sick building syndrome Work accident Occupational fatality Workers ' compensation Workplace phobia Workplace wellness Equality Affirmative action Equal pay for women Infractions Corporate abuse Accounting scandals Corporate behaviour Corporate crime Control fraud Corporate scandals Discrimination Dress code Employee handbook Employee monitoring Evaluation Labour law Sexual harassment Sleeping while on duty Wage theft Whistleblower Workplace bullying Workplace harassment Workplace incivility Willingness Civil conscription Conscription Dead - end job Extreme careerism Job satisfaction Organizational commitment McJob Refusal of work Slavery Bonded labour Human trafficking Labour camp Penal labour Peonage Truck system Unfree labour Wage slavery Workaholic Work aversion Work ethic Work -- life balance Downshifting Slow living Termination At - will employment Dismissal Banishment room Constructive dismissal Wrongful dismissal Employee exit management Exit interview Layoff Notice period Pink slip Resignation Letter of resignation Restructuring Retirement Mandatory retirement Retirement age Severance package Golden handshake Golden parachute Turnover Unemployment Barriers to Employment Depression Great Depression Long Depression Discouraged worker Frictional unemployment Full employment Graduate unemployment Involuntary unemployment Jobless recovery Phillips curve Recession Great Recession Great Recession job losses List of recessions Recession - proof job Reserve army of labour Types of unemployment Unemployment Convention Unemployment benefits Unemployment extension Unemployment insurance Unemployment rates Employment rates Employment - to - population ratio Structural unemployment Technological unemployment Wage curve Youth unemployment See also templates Aspects of corporations Aspects of jobs Aspects of occupations Aspects of organizations Aspects of workplaces Corporate titles Organized labor Retrieved from `` https://en.wikipedia.org/w/index.php?title=Wage&oldid=798641834 '' Categories : Wages and salaries National accounts Hidden categories : Articles needing additional references from October 2009 All articles needing additional references CS1 maint : Extra text : editors list Talk About Wikipedia Wikiquote Беларуская Cymraeg Deutsch فارسی 한국어 हिन्दी Қазақша Bahasa Melayu नेपाली 日本 語 Oʻzbekcha / ўзбекча ਪੰਜਾਬੀ Русский Simple English தமிழ் Türkçe Українська Tiếng Việt Edit links This page was last edited on 3 September 2017, at 02 : 21. Text is available under the Creative Commons Attribution - ShareAlike License ; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia ® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization. About Wikipedia

Question: what are the major determinant of workers pay
Answer: market forces, or else by collective bargaining