2 ms·
There are entire schools of economic thought about that question. In the classical view, it's your labour power. In the neoclassical view, it's the scarcity of
by reedf1 4y ago
There are entire schools of economic thought about that question. In the classical view, it's your labour power. In the neoclassical view, it's the scarcity of the labour you produce.
- nequo 4y agoI am asking because in a simple model of perfect competition, you are paid your marginal product of labor, i.e., your productivity. Spence's signalling model of education is also based on the idea that people are compensated for their productivity. Even in efficiency-wage models, the equilibrium wage is set at the marginal product of labor.