मजदूरी-पर-रखना इसके अंग्रेजी अर्थ का उदाहरण

These workers are attracted to the growing manufacturing sector where higher wages are offered.

It also assumes that the wages in the manufacturing sector are more or less fixed.

Entrepreneurs in the manufacturing sector make profit because they charge a price above the fixed wage rate.

In the model, the subsistence agricultural sector is typically characterized by low wages, an abundance of labour, and low productivity through a labour-intensive production process.

In contrast, the capitalist manufacturing sector is defined by higher wage rates as compared to the subsistence sector, higher marginal productivity, and a demand for more workers.

This gives rise to the possibility of creating new industries and expanding existing ones at the existing wage rate.

) Therefore, due to the wage differential between the capitalist and subsistence sector, workers will tend to transition from the agricultural to the manufacturing sector over time to reap the reward of higher wages.

Total agricultural product will remain unchanged while total industrial product increases due to the addition of labour, but the additional labour also drives down marginal productivity and wages in the manufacturing sector.

Eventually, the wage rates of the agricultural and manufacturing sectors will equalize as workers leave the agriculture sector for the manufacturing sector, increasing marginal productivity and wages in agriculture whilst driving down productivity and wages in manufacturing.

The end result of this transition process is that the agricultural wage equals the manufacturing wage, the agricultural marginal product of labour equals the manufacturing marginal product of labour, and no further manufacturing sector enlargement takes place as workers no longer have a monetary incentive to transition.

Such growth does not raise the value of the subsistence wage, because the supply of labor exceeds the demand at that wage, and rising production via improved labour techniques has the effect of lowering the capital coefficient.

To start such a movement, the capitalist sector will have to pay a compensatory payment determined by the wage rate that people can earn outside their present sector, plus a set of other amounts includes the cost of living in the new sector and changes in the level of profits in the existing sector.