2 ms·
I think there is a miscommunication in "worth" between some of the posts here. Definition 1. - your version "a worker is only "worth" $50/hour if there is a su
by CarbyAu 6y ago
I think there is a miscommunication in "worth" between some of the posts here.
Definition 1. - your version
"a worker is only "worth" $50/hour if there is a supply of people willing to pay them $50/hour."
Definition 2.
"a worker is "worth" $50/hour if they add $50/hour value for the business." (who then goes on to pay the worker as little as possible, maybe only $5/hr)
Not sure which definition is "correct".
- lukevdp 6y agoWhen you’re talking about wage prices, definition 1 is the relevant definition. Definition 1 includes both supply and demand. You have a worker willing to work for $50/hr and someone willing to pay them $50/hr. Definition 2 is only taking into account demand. You have a supplier who has set their price, but no buyers at that level.