home Self-development Factors in the formation of wages. Factors affecting the level of wages What affects wages

Factors in the formation of wages. Factors affecting the level of wages What affects wages

Salary is the amount of monetary remuneration that is initially offered to an employee when hiring for a position and is necessary to calculate the final amount. The salary is recorded in the employment contract of the new employee, as well as in the order when hiring. This indicator is the basis for further calculation of other indicators.

Salary is the amount of monetary remuneration that is given to the employee "on hand" after taking into account all allowances and deductions. When calculating the salary, the salary amount is used. Various bonuses are added to it, bonuses, for example, for good fruitful work (these payments are variable, since they may or may not be, depending on the results achieved, established by the organization itself); various additional payments for work in the evening, at night, on holidays and weekends; compensation, for example, "for harm" at work. Also, the employer himself, at his discretion, can pay extra for seniority, combining several positions, and frequent business trips. In addition, there are northern and regional coefficients for those workers who work in the Far North and areas equal to it. On the other hand, personal income tax, various deductions for damage to property and more are deducted from the salary.

Differences between salary and wages

What is the difference between a salary and a salary? The most important difference between them is the calculation of one indicator based on the other. That is, there is a basic salary for each specific position according to the staffing table, and the salary is calculated based on this indicator and all allowances, as well as deductions that are regulated by law in Russia.

The amount of the salary is immediately recorded in the documents, as soon as a person gets a job, the salary is calculated after a month of work in the organization (or another previously agreed period), or upon dismissal.

The amount of the salary is fixed and is reflected in staffing table organizations. The salary is calculated based on the amount of the salary. On the other hand, wages do not affect the size of the salary in any way.

Thus, the salary is the remuneration for work. But, the salary is a constant and fixed value, and the salary is variable and depends on many factors: qualifications, work experience, working conditions, quality of work, and so on. Sometimes the salary and the salary are the same, but in most cases the salary is only a part of the salary (sometimes ½ of the salary or even less).

What affects the level wages an employee? The range of opinions is wide enough here. Traditionally, the level of remuneration depends on the status of the employee and his place in the organizational hierarchy. In fact, the level of wages depends on the influence of various factors, which are quite difficult to take into account. Therefore, there are several features that classify factors that affect the level of wages.

In accordance with the first sign, all factors contributing to both an increase and a decrease in the size of wages are classified into - internal and external.

Internal factors affecting the level of wages include:

· The scale of activities and the level of profitability of the organization;

· The level of labor productivity - i.e. from the results, both of the individual labor of each employee, and from the joint results of the activities of the entire collective of an agricultural organization, this determines the combination of individual and collective material interest of workers in the growth of individual and collective labor productivity - as the main basis of the economic well-being of the organization;

· Professional and qualification level of employees;

· Salary systems applied in the organization (on a tariff or tariff-free basis);

· The quality of work and the personal labor contribution of the employee to the final result.

TO external factors affecting the size of wages include:

· Standard of living in the region;

· The cost of labor in the labor market;

· The economic state of the industry;

· Competitiveness of products (services);

· Demand for workers - in conditions when demand exceeds supply, the price of labor power rises, therefore, in conditions of a shortage of labor power, wages will grow;

· Accounting of the size of wages in other organizations;

· The ratio of the volume of vital needs with the nominal wages (PM);

· The level of wages in the region and in the country (minimum wage).

The most important criteria that determine the size of wages, of course, are the professional and qualification level of workers and their attitude to work, which are directly reflected in the level of labor productivity. Only a highly qualified worker is able to increase the productivity of his labor - to increase the quantitative and improve the quality parameters of work, which should be reflected in the amount of wages.

The second feature is the classification of factors affecting the level of wages into objective and subjective, which, in turn, can be divided into several groups:

Internal economic forces- improvement financial situation and the solvency of the organization, production growth and a corresponding increase in labor productivity;

· Inflationary processes - growth in consumer prices and an increase in the cost of living;

· Changes in national standards of remuneration - an increase in the minimum wage, an increase in the tariff rate of the 1st category of the UTS;

· Signals from the local labor market - an increase in wages in neighboring organizations, difficulties in recruiting and retaining personnel;

· Pressure from the personnel of organizations;

· Length of service - the basis for a periodic increase in wages for length of service is the fact that employees acquire additional experience every year, their work is more and more appreciated by the employer, and thus they deserve higher wages; the systems of such payments differ from each other depending on the categories of workers, industry and organizations;

· Change in the attitude of personnel to work.

On the one hand, demands for higher wages for agribusiness workers are justified and objectively fair. Here it is necessary to search for conditions and factors contributing to its increase. On the other hand, wage increases should start with the creation of efficient jobs that create competitive products and only then raise questions about raising wages for workers.

Ultimately, wages depend on the level economic development country, on the quantity and quality of labor individual worker and the collective performance of the organization.

Wage factors

We propose to understand what wages are and what are the factors of wages. You don't need to have an accounting or economics background to understand this. So, let's begin.

Wages are monetary compensation that an employee receives in exchange for their work. That is, done the job, get the money. Now let's look at the factors that determine wages. There are several of them. And the first one is the form of payment. Two are commonly used:

Time wages are paid in proportion to the time worked by the employee. When applying for a job, the standard of hours worked is discussed. This can be an hourly rate, a weekly rate, or a monthly salary. If the latter option is used, then the number of days and hours that will need to be worked is specified.
Piecework pay - the employee receives money for the amount of work performed. That is, you need to hand over 100kg finished products, and how much you do it in a day or in a week is already your problem. The main thing is that you have to get the job done. Sometimes, with this form of payment, terms can also be negotiated.

What affects the salary?

Consider the factors affecting wages. There are many of them, but we will list the main ones below.

Supply and demand. It all depends on the demand for a particular profession in the labor market or in an individual enterprise. If economic growth is observed in some area of production, those working in it will receive more. Accordingly, if the decline, then less.
Qualification. Naturally, a person with more high level skill gets more. Education also influences this factor.
Age. It is believed that people aged 24 to 45 are most interested in increasing wages. They are ready to spend maximum effort and time on work. Therefore, employers give preference to them.
Floor. Strange as it may seem, but this is also important. It is believed that for women, family and children come first. And then work. Consequently, it cannot devote its maximum strength to production. Although modern women, in my opinion, have proven otherwise.
The form of remuneration. Time and piece rates are not always effective. More preferable are those forms where the work of a particular person is assessed, his contribution to business, responsibility and initiative.
Labor stimulation. How better man works, the more they pay. This refers to various bonuses, bonuses, incentives. Sometimes their size can reach up to 40% of the basic salary. Naturally, workers devote themselves to work as much as possible, because this is their money.

As you can see, the factors in the formation of wages are varied, although not everything can be taken into account when looking for a job. The most important thing is the desire to make good money and perseverance in achieving this goal.

Even more interesting

Factors determining the size of wages

Riccardo Maicus believes that wages are determined by the minimum physical means of subsistence for an employee.

Marxist theory says that wages are the monetary expression of the value of commodity-labor power, and its value is determined by the value of the means of subsistence necessary for the worker to reproduce his labor power and to support the younger generation.

Modern economic theories determine the value of wages by the economic laws of supply and demand that operate in the labor markets.

There are a lot of factors influencing the size of wages, they are all subdivided into two large categories:

1. Factors of social production.

The main factors of social production include the following:

Ø The cost of the means of subsistence necessary for the normal reproduction of the labor force of the employee and his family members. This is the lower limit of wages (labor cost). But depending on the material and spiritual culture that are established in the country, there is also an upper limit for the cost of labor. It includes the costs of the social needs of the employee and his family members (cultural needs, education, health care, etc.).

Ø Employee qualification level.

Ø National differences in the degree of development of economic, social living conditions of people in different countries.

Ø Demand and supply for labor in the labor market. In particular, demand is determined by the following factors:

ü The need of employers for certain categories of workers and workers.

ü The level of technical equipment of labor (the higher - the less)

The offer depends on:

ü Total population.

ü Share of the working-age population.

ü The quantity and quality of labor that take place in a particular country, different qualifications of workers.

ü Average level of wages in the country.

ü Organization and strength of trade unions.

Ø Competition and monopoly.

Competition in the labor market brings wages closer to the market price of labor. Competition is the equalizer of different levels of wages among workers of the same category.

Monopoly, on the contrary, affects wages, preventing them from equalizing, because they depend on the employer, the monopolist.

1.3. Factors affecting the size of wages.

Wages seem to be a simple and straightforward phenomenon. Under a contract of employment, a person is obliged to work at an enterprise (institution) for a specified time, and an entrepreneur, in exchange for his labor, is obliged to pay a certain amount of money. This is how the deal for the sale and purchase of labor is completed. Consequently, wages are outwardly perceived as the price (monetary expression) of labor-commodity.

Meanwhile, it is not clear, perhaps the most important thing: how is the amount of remuneration determined? Apparently, this issue is resolved in different ways by the participants in the market transaction. The employer is interested in hiring a person who possesses labor force normal quality. We are talking at least about the average working capacity, which ensures the proper quantity and quality of work. In turn, the owner of the labor force does not sell it to the businessman forever (otherwise he would become a slave), but for a certain period. He is interested, firstly, in the fact that at the enterprise he was provided with normal working hours and conditions. Secondly, he needs such a salary, with which he can acquire all the benefits of life for the restoration of labor power - the totality of physical and spiritual abilities for work. In other words, normal wages are equal to the value of the means of subsistence necessary for the reproduction and development of labor power.

However, it is important to note the following circumstance. Labor power is a completely unusual - a living and, one might say, animate commodity. Unlike ordinary useful things, the value of the value of labor power has two quantitative boundaries. The lowest - physiological - border is equal to the cost of life benefits and services that are sufficient to restore the working capacity of a person with the lowest skill level. The upper bound includes the value of the aggregate of social and cultural goods and services that are required for the reproduction of a highly skilled labor force. Such a set historically changes depending on the degree of development of the economy and civilization in each country.

But economic interests regarding the provision of normal wages and normal working conditions were very different among businessmen and employees, especially in the initial phase of capitalism. 7 Entrepreneurs sought to bring workers' earnings to their lowest level. The famous English writer Charles Dickens (1812-1870), in his novels The Adventures of Oliver Twist, Dombey and Son and other works, described the very difficult working and living conditions of the poor. However, P. Samuelson and W. Nordhaus did not fully agree with the writer: “Even Dickens's novels hardly fully reflect the monstrous conditions of child labor, the danger of hazardous production and the terrible sanitary conditions in factories at the beginning of the 19th century. Dominated by 84-hour work week with a break for breakfast and sometimes for dinner. It was possible to squeeze out a large amount of work from a 6-year-old child, and if a woman lost a couple of fingers at the loom, then she had eight more, so she was quite suitable for further work. " eight

For several centuries, the free enterprise system was unable to solve the problem of normalizing the conditions of wage labor and its payment. Therefore, social protests against the arbitrariness of this system multiplied and intensified. Finally, in the 30s - 50s of the XX century. v Western countries ah, the state acted as the guarantor of one of the important conditions for the economic security of workers. It is in legislatively appointed a minimum wage that everyone is required to comply with, including private firms. To determine the lowest salary government bodies calculate the so-called cost of living (or poverty line). It is usually set for a family based on the standards for satisfying the least vital needs for many goods and services, taking into account the price level. At the same time, it is supposed to provide living conditions for an employee who performs the most simple work... It goes without saying that the minimum wage is only a starting level, from which wages for more complex work begin to rise. The minimum wage can be in the form of an hourly rate (as is customary, for example, in the United States) or monthly (as is customary in the Russian Federation). According to the Institute of Labor in 1995, it barely exceeded 20% of the cost of the minimum subsistence basket. The minimum wage is periodically revised taking into account the rise in the cost of living, changes in the minimum consumer budget and the socio-economic situation in Russia. Currently, the minimum living wage in Russia is 4,600 rubles.

Based on the above, it follows that the formation of wages, first of all, depends on the material and socio-cultural conditions of the reproduction of the labor force. In this regard, the amount of remuneration for labor is determined by a number of specific socio-economic factors. What are these factors?

⚡ Salary ⚡- This is the remuneration received by the employee for his work, or, in other words, the price of labor.

Video: What are the forms and systems of remuneration of personnel. Labor market and wages. Employment and unemployment. Systems, forms and types of wages

Types of wages

Nominal wages are the amount of money that the employee receives in the form of remuneration for work.
Real wages are the amount that can be purchased for nominal wages.

Factors affecting the size of real wages

The value of the nominal wage - the higher the nominal, the, as a rule, the higher the real wage. In reality, an increase in nominal wages can be offset by an increase in prices.
The number and rates of taxes - the more taxes and / or the higher their rates, the lower the real wages and vice versa.
The level of prices for goods and services - the higher the tariffs, the lower the real wages and vice versa.

⚡ Forms of wages ⚡

Piecework wages - accrued to pieceworkers depending on piecework rates and piecework rates per unit of output or on the number of labor operations performed. It is used, for example, for workers on a conveyor belt.
Time wages - determined on the basis of tariff rates (salaries) and the fund of worked hours worked. The time-based form of remuneration is used to pay for the work of engineers, office workers and other time workers.

Pay systems

Direct piecework wages = piecework earnings + additional payments + allowances
Piece-piece bonus salary = piece-rate earnings + additional payments + allowances + bonus
Piece-rate progressive salary = piece-rate earnings + additional payments + allowances + bonus + progressive additional payment for overfulfillment of production quotas
Simple time wage = wage rate + surcharges + allowances
Time-bonus salary = wage rate + additional payments + allowances + bonuses
Collective salary - is accrued to a team of workers (brigade) and then distributed among specific employees, depending on the labor force participation rate (KTU).
Lump-sum wages are calculated for the performance of especially important work in a short time. Wages under this system are significantly higher and are often used in construction.
Contract salary - is established in the labor contract concluded between the employee and the employer, includes various additional payments, allowances and bonuses.

Composition and structure of wages

Based on the definition of wages given in Article 129 Labor Code Russian Federation, we can distinguish the components of wages. The structure of wages is formed by:

the main (constant) part of wages;
compensation payments;
incentive payments.

The bulk of wages is established on the basis of the employer's remuneration system and should not be less than the established federal law the minimum wage (minimum wage). The main part of the salary is its constant component, it does not depend on the profit received, the volume of sales and other indicators. The main part of wages is calculated for the hours actually worked or actually performed work at tariff rates, official salaries.

When setting the bulk of wages, the employer is guided by the following principles:

the salary of each employee should depend on his qualifications, the complexity of the work performed, the amount and quality of labor expended;
any kind of discrimination is prohibited in the establishment and amendment of the conditions of remuneration;
for work of equal value, the employer is obliged to provide employees with equal pay.

Compensation and incentive payments- this is a variable part of wages, which depends on the guarantees established by the state and the conditions of remuneration established for the given employer. Compensation and incentive payments are not related to payment for actually worked hours or actually performed work.

For this part of wages, the method of local regulation is more inherent, especially for incentive payments, when determined by legislation basic rules their establishment.

A number of compensation payments are established by law, their payment is the employer's responsibility:

a) for performance of work in special conditions (work on heavy work, work with harmful and (or) dangerous and other special conditions labor, labor at work in areas with special climatic conditions);
b) for work in the territories exposed to radioactive contamination;
c) for the performance of work in conditions deviating from normal (performance of work of various qualifications, work when combining professions (positions), expanding service areas, increasing the volume of work or performing the duties of a temporarily absent employee without release from work specified labor contract, overtime work͵ work at night, on weekends and non-working holidays and performance of work in other conditions deviating from normal);

The specific amounts of compensation payments are determined by the collective agreement, agreements, local regulations, labor contract and are not lower than those established by labor legislation and other regulatory legal acts containing labor law norms.

At the same time, the Labor Code of the Russian Federation provides for increased wages for persons working on a rotational basis, and for persons working in the Far North and equivalent areas.

Thus, the main purpose of compensation payments is to reimburse the additional labor costs of the employee, which are associated with the mode of work, working conditions, features labor activity and character certain types labor. They are charged in addition to official salaries and tariff rates.

Incentive payments(additional payments and allowances of a stimulating nature, bonuses and other incentive payments) are a variable part of wages, which may depend on the profit received, on the individual contribution of the employee to the result economic activity etc.

Bonuses and other incentive payments, unlike most compensation payments, are not regulated at the legislative level, their payment is the employer's right. But it should be noted that if the bonus and other incentive payments are provided for by the remuneration system, then the employer has an obligation to pay them, and the employee, when he fulfills the indicators and bonus conditions, has the right to demand payment of these incentive payments.

Thus, incentive payments as part of wages can be characterized as cash payments for achieving certain results in labor.

The main purpose of using additional payment systems, incentive bonuses and bonus systems is aimed at creating a material interest among employees in achieving those indicators that are not provided for by the basic payment at tariff rates and salaries, as well as encouraging employees to improve their professional level, reducing staff turnover, attracting the necessary highly qualified specialists.

Incentive payments (surcharges or allowances) are established:

for high qualifications;
professional excellence;
work experience in the organization;
knowledge of foreign languages, etc.

It is important to note that in order to stimulate the interest of employees in improving the quality of work in organizations, a bonus system is used. Payment of bonuses is an incentive for conscientious execution job responsibilities... The awards can be divided into two groups:

a) Bonuses included in the wage system - the right to receive this bonus from the employee, and, accordingly, the obligation to pay it from the employer, arises subject to the achievement of specific indicators predetermined by the bonus system. Otherwise, the right to the prize does not arise.
b) Bonuses not provided for by the remuneration system - these bonuses have the character of a one-time incentive at the unilateral discretion of the employer and are paid, as a rule, irregularly, in addition, they are not associated with specific achievements in work. In this case, incentive bonuses are a right, and not an obligation of the employer, in this regard, its conditions are determined by him independently and do not require a pre-formalized basis.

Bonus indicators should correspond to the types and tasks of production, reflect the relationship with the labor contribution of each employee and the team as a whole. The number of indicators and conditions of bonuses should not exceed two or three, otherwise the connection between the bonus system and the main tasks of production should be lost. The indicators should not contradict each other - the improvement of some should not contribute to the deterioration of others.

Meanwhile, it is unclear, perhaps the most important: how is the amount of remuneration determined? Apparently, this issue is resolved in different ways by the participants in the market transaction.

The employer is interested in hiring such a person who has a workforce of normal quality. We are talking at least about the average working capacity, which ensures the proper quantity and quality of work.

In turn, the owner of the labor force does not sell it to the businessman forever (otherwise he would become a slave), but for a certain period. He is interested, firstly, in the fact that at the enterprise he was provided with normal working hours and conditions. Secondly, he needs such a wage, which can be used to purchase all the benefits of life for the restoration of labor power - the totality of physical and spiritual abilities for work. In other words, normal wages are equal to the value of the means of subsistence necessary for the reproduction and development of labor power.

But economic interests related to ensuring normal wages and normal working conditions differed greatly among businessmen and employees, especially in the initial phase of the development of capitalism. Entrepreneurs sought to bring workers' earnings to their lowest level. The famous English writer Charles Dickens (1812-1870) described the very difficult working and living conditions of the poor in his novels The Adventures of Oliver Twist, Dombey and Son and other works. However, P. Samuelson and V. Nordhaus did not fully agree with the writer:

“Even Dickens’s novels hardly fully reflect the horrific conditions of child labor, the dangers of hazardous production, and the dire sanitary conditions in factories in the early 19th century. An 84-hour workweek prevailed, with a break for breakfast and sometimes for dinner. It was possible to squeeze out a large amount of work from a 6-year-old child, and if a woman lost a couple of fingers at the loom, she had eight more, so she was quite suitable for further work. "

To determine the lowest wage, government agencies (in the United States and other countries) calculate the so-called subsistence minimum (or poverty line). It is usually set for a family of four (an employee, his wife and two children), based on the standards for meeting the least vital needs for many goods and services, taking into account the price level. At the same time, it is supposed to provide living conditions for the employee performing the simplest work. It goes without saying that the minimum wage is only a starting level, from which wages for more complex work begin to rise.

Factors determining the size of wages

So, we can draw the following conclusion. The formation of wages primarily depends on the material and socio-cultural conditions of the reproduction of the labor force. In this regard, the amount of remuneration for labor is determined by a number of specific socio-economic factors. What are these factors?

As we have seen, the amount of remuneration for labor depends on the value of the value of the means of subsistence spent on the reproduction of labor power.
The skill level of workers plays an important role in increasing earnings. In other words, the size of investments in "human capital" is reflected here.
The level of labor productivity, which is quite high in recent decades due to the introduction of the achievements of the scientific and technological revolution, significantly affects the amount of remuneration for labor. It is quite natural that at technologically advanced enterprises, the volume of production increases, its quality improves, and workers are rewarded with large wages.
The size of wages is largely influenced by national differences in the degree of development of economic and social conditions of life in different countries. These differences ultimately depend on the scientific and technical level of production and labor efficiency, the degree of development of the labor force, the achieved socially normal quality of life and other factors. This can be clearly seen from the table.

Table. National Differences in Wages (Manufacturing, 1995)

In terms of wages, the United States has long been the leader in the Western world. Now a new technological revolution is leading to an ever greater leveling of technical and economic conditions in developed countries. The cost of labor is increasing in many countries, and the global competition between different countries in the degree of use of skilled labor is intensifying. It is noteworthy that in the 50-80s. XX century in the West there was a significant increase in real wages. Especially significantly - 2-3 times - it increased in Great Britain, France, Germany, Italy, 4 times - in Japan. As a result, the gap in national wages narrowed, and these countries approached or overtook the level of the United States.

At the same time, it is clear that much less developed states are very far behind Western countries. This gap is primarily due to the difference in scientific, technical and economic performance production, in the level of qualifications of workers.

In addition to the socio-reproductive factors we have considered, market factors significantly affect the amount of wages.

The first is supply and demand for. The amount of remuneration for labor can change in accordance with the laws of supply price and demand price.

When demand exceeds supply, the price a certain kind labor is above the equilibrium price point. Now, under the influence of the scientific and technological revolution, the demand for highly qualified workers is not fully satisfied, and this leads to an increase in the wages of specialists with an average and higher education... On the other hand, the demand for unskilled labor in most cases falls, which negatively affects the earnings of people without secondary education. Such data for the United States is noteworthy. In 1996, the average hourly earnings (in dollars) were: doctors - 60, lawyers - 45, oil engineers - 34, construction workers - 18, locksmiths - 11, entertainment workers and salespeople in retail stores- 7 dollars.

People of intellectual work with academic titles receive 5 times more than those who did not graduate from high school.

The second market factor affecting the amount of remuneration for labor is competition in the labor market. Here rivalry leads, naturally, to the approach of the level of wages to the equilibrium price of labor. This means that competition is the equalizer of earnings. In simple terms, the labor market affirms the principle: equal pay for equal work.

True, in modern conditions such perfect competition is rare. But discrimination is still allowed - restriction or deprivation of the rights of certain groups of citizens on the basis of race or nationality, gender, religious and political beliefs, etc. For example, in the United States, women or workers belonging to national minorities (who have the same abilities, education, qualifications and experience as white men) are treated as people of the lower class when hiring, providing certain professions, promoting or increasing wages.

And is showing its strength in the labor market. First of all, the monopolists of the means of production - employers try to dictate their terms of payment to workers. They are interested in unemployment, which weakens the opposing force and makes it possible to reduce wages. In turn, the organization of workers in free, independent trade unions allows them to counter-attack through collective agreements with entrepreneurs, to defend common economic interests.

Clashes between employers and trade unions can be violent at times, especially in a poor business environment. The strike struggle sometimes reaches such a high intensity that it can even paralyze the entire economic life. It is no coincidence that, therefore, in many countries the state interferes in relations between businessmen and workers, their trade unions. As a result, a kind of "triangle" is formed. It interacts with employers' unions, trade unions and the state, which thereby regulates many parties. labor relations and wages.

The size and dynamics of wages are influenced by the same factors as the cost of labor. Since wages are a part of the newly created value, in which labor costs are embodied, it is necessary to take into account social and reproductive factors:

1) Cost of living

Needed for the reproduction of labor. These funds should also be sufficient to support disabled family members.

2) The main element underlying the difference in the price of individual groups of labor is today the degree professional qualifications

It is determined, first of all, by the level of scientific and technical knowledge acquired during general and special education and is usually estimated by the number of years of training. Work experience is another qualification indicator.

3) For an employer, wages are an essential component production costs

And he tries to minimize them, especially on a per unit basis. For an employee, wages are income

And he strives for its possible maximum. The confrontation between these two trends determines the level and dynamics of wages.

4) Wages are also affected by degree of labor intensity

This is especially true if the form of remuneration is piecework. The cost of wages in the case of piecework wages is paid in proportion to the amount of products produced by the employee. Thus, the employee increases the intensity of work, while increasing wages.

5) The amount of wages is closely related to differences in complexity of the work performed

The more difficult the work performed, the more it requires knowledge, experience, mental and physical efforts, and therefore should be paid higher. Thus, wages require a commensuration of various types of work in terms of their complexity and the level of qualifications of the employee, which is the objective basis for its differentiation. In this role, wages have two main functions:

1. Reproductive - wages should be sufficient to meet the level of physical and spiritual needs of the employee and his family members that have developed in society, including an element of material support for the development of the workforce, advanced training of workers, etc.

2. Incentive - wages should be closely linked to the results of work of each employee and the main tasks that the employer solves in the course of his entrepreneurial activity.

3. National differences in the degree of economic development of social living conditions in different countries. Ultimately, they depend on the scientific and technical level of production forces and efficiency. social labor, the degree of development of the labor force, the socially normal quality of life and other factors.

In addition, one should keep in mind market factors that affect the price of labor:

Currently, a multi-link and multi-factor mechanism for regulating wages has been formed. There are three main links: government intervention, collective - contractual regulation, competitive relations in the labor market.

1. Key element labor market impact is supply and demand ratio

labor force in general, as well as in certain areas and in certain professions.

Graphically, the relationship between supply and demand in the classical concept can be depicted:

Fig. 6. Supply and demand ratio

The real equilibrium wage (W / P) 0 is established by the equality of demand and supply of labor. Any other level of real wages indicates an excess supply or demand for labor. With real wages (W / P) 1, there will be a situation in which the labor supply NS1 exceeds the demand for labor ND1, i.e., unemployment will arise.