05.01.compensation

05.01.compensation - BUEC 280 Lecture 8 Labour Compensation...

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  Prof. Simon D. Woodcock BUEC 280 Lecture 8 Labour Compensation
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  Prof. Simon D. Woodcock Last two lectures Talked about ONE equilibrium outcome of  the labour market: employment (and  unemployment) The other equilibrium outcome is WAGES  (today)
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  Prof. Simon D. Woodcock Some definitions Wage earners :   workers who are paid by the hour or day  most workers in Canada most labour law applies to these workers (overtime, hours limits, etc.) Salaried workers : workers paid by the week, month, year, etc. Subject to less regulation (I’m salaried -> I get paid the same whether I  work 10 or 100 hours per week) Wages and salaries include: basic pay, bonuses, commissions, tips  Gross wages : wages before deductions (income tax, EI premiums,  CPP premiums, etc.) Net wages : wages after deductions
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  Prof. Simon D. Woodcock Wages, Earnings, and Income Wage  or  wage rate : payment for a unit of time worked (hours,  weeks) Earnings : (wages) x (number of time units worked) Supplementary labour income  or  non-wage benefits : non- cash benefits received by workers for labour services (e.g.,  employer-provided extended healthcare, paid vacation, etc.) Labour income  = earnings + supplementary labour income Unearned income:  income from non-labour sources (income  payments from government, etc.) Total income  = labour income + unearned income
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  Prof. Simon D. Woodcock Nominal vs. real wages Earning $10/hr today is not the same as earning  $10/hr 100 years ago Nominal wage : rate of payment in current dollars Useful for comparing workers at a point in time
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05.01.compensation - BUEC 280 Lecture 8 Labour Compensation...

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