THE WAGE FUND THEORY
THE WAGE FUND THEORY Wages and salaries are the price that is paid to the human labour for their physical or skill full efforts performed by them. There are many theories that have been conducted for us to understand the allocation of wages and salaries to the human labour. These theories help us to make sure that right amount is paid for the right amount of work done by human labour. There are various factors that depend for salaries and wages such time, job and efforts and so on. The contemporary theories would not have come to picture if the modern business economy had not come into picture Out of many theories that have come into existence one of the famous theory is the wage fund theory give by Adam Smith(1723-1790) which later was then developed by J.S.Mills. The basic understanding of theory is that in a firm there is a particular allocated amount that is kept aside by the firm to pay it’s workers. The kept aside amount is known as wage fund. The total wage f...