Out of the following theories of wages which one is also called as Iron Law of Wages ?
The Subsistence Theory of Wages, associated with classical economist David Ricardo and French Physiocrats, is famously known as the 'Iron Law of Wages'—a phrase coined by…
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Out of the following theories of wages which one is also called as Iron Law of Wages ?
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The Subsistence Theory of Wages, associated with classical economist David Ricardo and French Physiocrats, is famously known as the 'Iron Law of Wages'—a phrase coined by German socialist Ferdinand Lassalle. It postulates that market wages naturally gravitate toward the bare subsistence level needed to keep workers alive; if wages rise above subsistence, population growth increases labour supply and pushes wages back down.
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UGC NET HRM / Labour Welfare and Industrial Relations