The paper "The House Hold Earnings of Male and Female Are not Significantly Different" is a perfect example of marketing coursework. The wages or remuneration is considered as a social phenomenon may be looked at from different standpoints. From one viewpoint, it is seen as being paid for labour services (where the application of a person’ s skills and abilities are in a specified time is paid for by the person receiving the services) subject to the employer being able to afford within the economic production process of goods. The level of remuneration set majorly by the rule of supply and demand.
An increase in demand for products and services results to results increase in demand of labour (this being dictated by the economic situation in a country) as well as the productivity of those hired to provide the services. According to Ehrenberg, Smith (2003), the productivity of labour is dependant on technologies, the natural resources, the quality of labour, administration and organization. This implies that demand for labour is fixed by both individual’ s characteristics as certain human resources and technical resources and work organization some enterprises undertaken by the head of an enterprise.
Demand for labour is also fixed by what is referred to as macroeconomic ambience in a country. The level of labour supply is dependent on a number of people falling in some age groups, institutional legislation and availability of alternative sources of income (Ehrenberg, Smith 2003). Firstly, in a typical case where there are competitive conditions of wage level where the labour that is being put into use is determined by labour demand and supply (Rutkowski, J., & Scarpetta, S.
2005). Secondly, the wage is found to be equal to marginal revenue product, simply stated it can be considered as being the value of one extra unit of a produced product by use of one extra man-month or man-hour in a given workplace (Ehrenberg, Smith 2003; Samuel, L. 1997 ). Thirdly, the level remuneration is dependent on the level of human capital investment which is the compost of education and health protection. At an individual level, this is manifested in a person who has invested substantially in education having high pay and at the enterprise level.
Fourthly the level of remuneration is found to be affected by the political environment like legislation and labour unions activities as well as social and psychological factors (Sachs, Larrain 1993: 497; Ehrenberg, Smith 2003:). Fifthly, deviation of remuneration from market level is determined by the size of enterprise, labour competition situation as well as human resources management strategy. This, therefore, means that the wages or remuneration level of an employee has a relationship with their productivity level meaning the level of pay for an employee depends on how much has been accomplished by them.
This is in conformation with the primary law of enterprise activity which aims at maximizing profit. any enterprise performs analysis of activities they are involved in by looking for optimal disposition of resources with labour being one of the resources that are available. Ehrenberg, Smith (2003) notes that the marginal product of labour is a theoretical concept whose estimation at enterprise level pauses a great challenge. These lead to looking for indices that can be applied in the determination of wages one of which involve taking average productivity minus cost plus profit target (Sjø rup, K.
2004). The wages of an employee may be increased or reduced depending on the level of education, experience and some other features of the employee. The two parties, employer and employee have interest in knowing the level of impact of the affecting factors before settling for a decision such as making recruitment and wage determination for the case of an employer; being ready to offer services and accept the wages for the case of an employee (Esping-Anderson, 1990).
Ehrenberg, R.G., & Smith, R. S. (2003) Modern Labor Economics. Theory and Public Policy.
8th edition. Pearson Education, Inc.
Esping-Anderson, Gøsta (1990) The Three Worlds of Welfare Capitalism. Princeton
Hazans, M. (2005a) Unemployment and the Earnings Structure in Latvia, World Bank Policy
Research Working Paper (No. 3504). Washington DC, World Bank.
Haws, KL, Bearden, WO and Nenkov, GY 2012, ’Consumer spending self-control effectiveness and outcome elaboration prompts’, Journal of the Academy of Marketing Science vol. 40 no.5 p. 695-710.
Hazans, M. (2006, will be published) Latvia: Sharing the High Growth Dividend. A Living
Standards Assessment, Background paper for World Bank.
Kasser, T and Ryan RM, 1993, ’A Dark Side of the American Dream: Correlates of Financial
Success as a Central Life Aspiration’, Journal of Personality and Social Psychology vol. 65 no. 2
Malhotra, NK 2010, ’Marketing Research: An Applied Orientation’ Global Edition, Pearson Education, New Jersey
Oz, E. (2000) Management Information Systems (2nd ed.). Course Technology
Rutkowski, J., & Scarpetta, S. (2005) Enhancing Job Opportunities in Eastern Europe and
the Former Soviet Union. The World Bank
Sachs, J. D., &, Larrain, F. (1993) Macroeconomics in The Global Economy. Prentice-Hall,
Samuel, L. (1997) Fundamental social rights Case law of the European Social Charter.
Council of Europe Publishing
Sjørup, K. (Ed.). (2004) The European Employment Strategy and national employment
policies. Addressing the employment and gender challenges of the Knowledge Based Society.
(Report no. I), WELLKNOW Project