Wages And NLW Flashcards
How to work out wage
Pay rate per hour x amount of hours worked
What are some deductions that are taken away from your salary
Income tax
National insurance
Pension
Student loan repayment
How to work out net income
Gross income- deductions
Reasons for differences wages
Compensating Trade union power Productivity Skill levels Government pay policy Employer discrimination Regional costs of living
How does compensating cause a difference in wages
Compensating for risk taking
working in poor conditions
misses out pay
How does trade union power cause a difference in wages
Strong trade unions may be able to negotiate a rise in wages compared to non members
How does productivity cause a difference in wages
Highly productive workers who are able to generate revenue for a firm are often rewarded with a high pay
How does skill levels cause a difference in wages
There is an inelastic supply for highly skilled workers.
How does government pay policy cause a difference in wages
Many public sector workers have their annual pay determined by the government review bodies
How does employer discrimination cause a difference in wages
Woman get paid less than men
How does different regional costs of living cause a difference in wages
Costs more to live in cities
Benefits of national living wage
Higher tax revenue
Increased productivity
Less state benefits
Costs of national living wage
More expensive to employ
Other workers
demand higher wages
Inflation
