Factors that determine the level of wages in an economy
Level of education and training. Highly skilled labour is paid more % because of the high productivity and efficiency than a worker with a low level of education who is inefficient and needs further training. Cost of living. High costs of living like in urban areas leads to high wages to a worker to enable them to sustain better standards of living while low costs of living like in rural areas leads to low wages given to a worker because minimal cost required to sustain a given lifestyle. Level of talents and natural gifts. A highly talented worker is gifted contributes more to output hence earns more wages than a worker who is talented and contributes less to output. Nature of the job. Highly risky jobs results into high wages given to worker-compensate them for the risk they are exposed to while less risky jobs results low wages given to workers. Level of experience/ responsibility. High level of experience or more responsibilities leads to high wages given to a worker b...