Briefly explain 4 theories of wage in economic thought ?

1. Marginal productivity theory: This theory states that wages are determined by the marginal productivity of labor. In other words, workers are paid based on the value of the additional output they produce. Employers will pay workers a wage equal to their marginal productivity in order to maximize profits.

2. Labor market segmentation theory: This theory suggests that the labor market is divided into different segments based on factors such as skill level, education, and experience. Wages are determined within each segment based on the supply and demand for labor in that particular segment.

3. Institutional theory: This theory focuses on the role of institutions, such as labor unions and government regulations, in determining wages. These institutions can influence the bargaining power of workers and employers, leading to higher or lower wages than what would be determined by market forces alone.

4. Efficiency wage theory: This theory posits that employers may choose to pay higher wages than necessary in order to increase worker productivity and reduce turnover. By paying higher wages, employers can attract and retain more skilled and motivated workers, leading to higher overall productivity and profits.

1. Marginal Productivity Theory:
- Wages are determined by the marginal productivity of labor.
- Employers pay workers up to the value they contribute to production.

2. Efficiency Wage Theory:
- Employers pay wages above market clearing to increase worker motivation, reduce turnover, and enhance productivity.

3. Human Capital Theory:
- Wages reflect the value of workers' skills and abilities.
- Individuals invest in education and training to increase their earnings potential.

4. Dual Labor Market Theory:
- The labor market is divided into two sectors:
- Primary sector: High-income, stable jobs with good benefits.
- Secondary sector: Low-income, unstable jobs with few benefits.