Which of the following theories of wages is called as the ‘Iron Law of Wages’ ?
The Subsistence Theory of Wages—developed by David Ricardo and the French Physiocrats and later termed the 'Iron Law of Wages' (Ehernes Lohngesetz) by German socialist…
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Which of the following theories of wages is called as the ‘Iron Law of Wages’ ?
Answer and explanation
Correct answer A
The Subsistence Theory of Wages—developed by David Ricardo and the French Physiocrats and later termed the 'Iron Law of Wages' (Ehernes Lohngesetz) by German socialist Ferdinand Lassalle—posits that market wages naturally gravitate toward the bare minimum level required for the physical subsistence of workers and the perpetuation of their families.
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UGC NET HRM / Labour Welfare and Industrial Relations