What's it: Wage rigidity refers to a situation where wages are insensitive to changes in supply-demand in the labor market. For instance, when the unemployment rate is high, wages do not fall even though the demand for labor declines and
Wage
Wage: How it works and Types
What's it: Wages are irregular payments to workers. Companies may pay them based on the hours worked or their output. It may be paid daily, weekly, monthly, or when the project has been completed. Unlike salary, workers at the same level may
Time-Based Wage: How it Works, Pros and Cons
What's it: Time-based wage is a remuneration system calculated based on the time contributed by workers. It is usually calculated based on hours worked. Thus, the total wage paid to each individual is equal to the total hours worked times the
Piece-rate Wage: How it Works, Advantages and Disadvantages
What's it: A piece-rate wage is a wage system in which workers are paid based on the output produced. This is an alternative to time-based wages, calculated based on hours worked. This pay system is suitable for businesses where their products