Wage Determination Factors, Minimum Wage, and Gender Pay Gap Analysis

This essay provides an overview of the factors that determine wages, including the influence of market forces, government regulations, and labor unions. It highlights the importance of minimum wage in protecting workers' rights and discusses the impact of cost of living and consumer price index on wage determination. The essay also addresses the issue of gender wage discrimination, noting the significant disparity between men's and women's earnings. It further explores the employer's objective to maximize profit by seeking efficient labor at lower costs and the role of productivity in scaling up wages. The essay concludes by emphasizing the various factors influencing wages and the persistent discrimination in wages among different genders. Desklib offers a platform for students to access similar solved assignments and past papers for academic assistance.

Running head: INTRO TO ECONOMICS
Intro to Economics
Name of the Student
Name of the University
Author note

1
INTRO TO ECONOMICS
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Conclusion.......................................................................................................................................3
References........................................................................................................................................4

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INTRO TO ECONOMICS
Introduction
The amount paid in exchange of the work done by the employer to the employee is
known as wage. Wage rates depends on the traditions and structure of different economies. It is
influenced by the legislations and market forces such as supply and demand. Even the wage rates
differ on the basis of gender and age.
Discussion
Wages are prices paid to the workers. Though, they are different from the other prices. It
is essential to set a minimum wage for the workers. Otherwise there may be manipulation that
may result in loss for the employees and workers. The minimum wage is provided to protect the
right for the fair wage (Gwartney, Stroup and Ferrarini, 2016). Many countries of the world
introduced a price floor, below which labor will not be sold. Here, government regulations plays
a pivotal role. The salaries and wages paid by the employers is based on the labor policies and
laws mandated by the government of the country. The wages are determined on the basis of the
occupation. Other than this experience, location and education also matters in case of
determining the wages. The wages of a worker should be based on cost of living. Otherwise it
would be difficult for the worker to lead a health life. The consumer price index and increase or
decrease in general price level plays a vital role in determination of wages (Blau, 2016). The
perception of recipient is also important in case of wage determination. Every employee has a
wage expectation according to the market and fellow co-workers. The supply of labor in the
market also influences the wages of the workers. On the contrary, the supply of labor is regulated
by the labor unions. Therefore, collective bargaining of the labor union helps to set a fair wage
for the workers.

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INTRO TO ECONOMICS
According to the labor statistics, it is found out that, wages of women are comparatively
lower than their male counterpart. It is evident in all countries of the world. Therefore, there
exists a huge discrimination between different genders (Huang, 2018). Hence, it is a type of
social discrimination that should be controlled. According to the Census Bureau of 2017, the
median annual earnings of the women are less than the men by $10,086 in United States (US). In
addition, for each dollar a man earn, the woman earn 80.5% of it. Therefore, the wage
discrimination which is not desirable increases the social disparity.
The main objective of an employer is to get best labor at a lower cost. Therefore, the
organization will always try to get labor at a cheaper costs. The basic motive of an organization
is to maximize profit (Kuroki, 2018). In order to maximize increasing the productivity is
essential. Likewise, efficient labor at a lower wage would scale up the productivity of the
organization. Hence, the organization always seek for an efficient labor at a cheaper cost. This
will in turn scale up the wages of those workers.
Conclusion
There are various factors that determines the wages of the workers. Moreover, there is
discrimination in wages among different genders.

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INTRO TO ECONOMICS
References
Blau, F. D. (2016). Gender, inequality, and wages. OUP Catalogue.
Gwartney, James; Stroup, Lee and Ferrarini, (3rd ed., 2016). Common Sense Economics, New
York: St. Martin’s Press
Huang, C. (2018). Why Are US Women Decreasing Their Labor Force Participation If Their
Wages Are Rising?. Economic Inquiry, 56(4), 2010-2026.
Kuroki, M. (2018). Subjective well‐being and minimum wages: Evidence from US states. Health
economics, 27(2), e171-e180.