Wages are the price paid to labour for its contribution to the process of production. A form of compensation paid to employees for work during a period of time, wages may be paid daily, weekly, fortnightly, monthly, per hour or per unit. The services rendered by the labourer include both physical and mental services, and wages are paid under contract by an employer to a worker for services rendered. Types of wages include piece wages, time wages, cash wages, wages in kind, and contract wages.

  • Rising wages are often linked to inflation
  • Wages are important because they are directly linked to consumer spending and corporate profit margins
  • Wage increases are a late-economic indicator and precede the onset of recessionary environments.

Immigration Policy Can Impact Wages

  • Reducing immigration reduces the labor pool and can increase wages
  • Limiting short-term Visas can create labor gaps and drive wages up