WAGE FUND Meaning and
Definition
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"Wage fund" refers to the total amount of money or resources available to an employer or a specific industry for the payment of wages to workers during a given period. It represents the pool of funds that are allocated and intended solely for the purpose of meeting the cost of labor. The wage fund can be viewed as a financial provision set aside by employers or generated within an industry to remunerate employees for their work.
The concept of a wage fund presupposes that wages are determined by the available capital or resources, rather than by market forces such as supply and demand. It suggests that the amount of wages paid to workers is limited and determined by the size of the fund, which may be influenced by factors such as the financial capacity of the employer, profitability of the industry, and other economic considerations.
The wage fund theory originated in the early 19th century and was espoused by economists like David Ricardo and John Stuart Mill. It posits that increases in wages can only occur through the growth of the wage fund, either through the accumulation of capital or the expansion of industry. However, this theory has been widely criticized and deemed overly simplistic, as it neglects various complexities and dynamics at play in wage determination, such as labor market conditions, productivity, and bargaining power.
Overall, the wage fund is a concept that captures the financial resources available for the payment of wages to workers and has historically influenced discussions on wage determination.
Common Misspellings for WAGE FUND
- wage rund
- wae fund
- qage fund
- aage fund
- sage fund
- eage fund
- 3age fund
- 2age fund
- wzge fund
- wsge fund
- wwge fund
- wqge fund
- wafe fund
- wave fund
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- waye fund
- wate fund
- wagw fund
- wags fund
Etymology of WAGE FUND
The term "wage fund" originates from the field of economics and was popularized in the early 19th century. The concept can be traced back to the writings of economists such as David Ricardo and John Stuart Mill.
The term "fund" in this context refers to a pool or reservoir of money or resources set aside for a specific purpose. The word "wage" refers to the payment made to workers in exchange for their labor.
The idea behind the wage fund theory is that there is a predetermined sum of money available to pay for wages, which is fixed and limited. This fund is believed to be determined by factors such as the amount of capital available for investment, the overall wealth of the nation, and the level of productivity.
The proponents of the wage fund theory argued that the size of this fund limits the wages that can be paid to workers.
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