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Full-Text Articles in Social and Behavioral Sciences
How Wages Are Set: Uncertain Political Marginal Productivity: Price Theory, Wage Theory, Agency Theory, And The Theory Of The Firm, Thomas C. Lane
How Wages Are Set: Uncertain Political Marginal Productivity: Price Theory, Wage Theory, Agency Theory, And The Theory Of The Firm, Thomas C. Lane
University Avenue Undergraduate Journal of Economics
In this paper, I will derive a new model of wage prices by starting with price theory and wage theory and then blending in the cost factors uncovered by agency theory and the theory of the firm, and Alchian's work on economic uncertainty. The final result is still theoretical and cannot be used to predict a specific workers wage, but is nevertheless more complete and realistic in detailing the process of wage determination.