Wage
Moses I. Finley wrote in The Ancient Economy that wage labor requires two difficult conceptual steps to exist. First, a man's labor must be abstracted from his person and the product he creates. When someone buys an object from a craftsman, they buy the object itself, not the time spent making it. Hiring labor means purchasing this abstraction called labor-power instead. The purchaser then decides when and how to use that power for their own benefit. Second, the system needs a method to measure what was bought. This usually involves introducing another abstraction known as labor-time. The earliest unit of time used for payment remains the day of work today. Clocks later allowed for subdivisions like the hour, creating the modern hourly wage concept.
Wages appeared in the Middle Kingdom of ancient Egypt during early recorded history. Sargon of Akkad unified city-states into a single empire circa 2334 BC under his rule. His grandson Naram-Sin promulgated common standards for Mesopotamian artisan guilds between 2254 and 2218 BC. These standards included shekels as a unit of weight and value. Codex Hammurabi Law 234 from around 1755 BC set a specific wage for shipbuilders. That law stipulated a two-shekel prevailing wage for each sixty-gur vessel constructed under contract. Another section of the code established a ferry rate of three-gerah per day on charter parties. A separate law defined a two-gerah daily freight rate for contracts of affreightment. A final provision set a one-shekel daily freight rate for large vessels of that era.
Different economies structure their wage rates through varying traditions and market forces. Supply and demand interact with labor organization to determine pay levels globally. Legislation often sets boundaries while tradition shapes expectations within communities. Even where market forces dominate, studies reveal persistent differences based on sex and race. The U.S. Bureau of Labor Statistics reported in 2007 that women made approximately eighty percent of the median male wage across all races. This gap likely stems from supply and demand dynamics related to family obligations. White men earned about eighty-four percent of what Asian men made during that same period. Black men received roughly sixty-four percent of the wages paid to white men according to those statistics. These figures represent overall averages without adjusting for work type or quality.
Statistical evidence highlights significant gaps in remuneration across different economic sectors. The U.S. Bureau of Labor Statistics data from 2007 shows distinct patterns by gender and ethnicity. Women of all racial groups earned significantly less than their male counterparts despite similar roles. Family obligations appear to influence the supply and demand for female workers in many markets. Racial disparities also exist among men themselves within the American workforce. White men earned substantially more than black men who earned less than Asian men. These numbers reflect broad averages rather than specific job performance metrics. The source material does not adjust these figures for hours worked or skill levels. Such unadjusted data suggests systemic issues beyond individual productivity differences.
The wage level of public sector employees directly affects corruption frequency in governments. Higher salaries for government workers help reduce instances of bribery and unethical behavior. Countries with smaller wage gaps between public officials show lower corruption rates overall. This correlation suggests financial stability reduces incentives for illicit activities among civil servants. When pay is insufficient, temptation increases for those holding positions of power. Research indicates that adequate compensation serves as a deterrent against misconduct. Governments must balance budget constraints with the need for honest administration. Lower wages often correlate with higher risks of embezzlement and graft in administrative bodies.
Seventy-five million workers earned hourly wages in the United States during 2012. That figure represented fifty-nine percent of all employees over age sixteen excluding self-employed individuals. Most worker pay comes from market forces or collective bargaining agreements negotiated by unions. The Fair Labor Standards Act sets federal minimum wage standards binding on every state. Fourteen states plus numerous cities established their own higher minimum wage rates independently. Certain contracts require employers to pay prevailing wages under the Davis-Bacon Act. Activists promote living wage concepts accounting for basic necessities beyond current legal requirements. Total U.S. labor costs grew five-point-two percent year-over-year in the second quarter of 2022. This marked the highest growth since records began in 2001 according to available data.
Common questions
When did wage labor first appear in recorded history?
Wages appeared in the Middle Kingdom of ancient Egypt during early recorded history. Sargon of Akkad unified city-states into a single empire circa 2334 BC under his rule.
What specific wage was set for shipbuilders by Codex Hammurabi Law 234 around 1755 BC?
Codex Hammurabi Law 234 from around 1755 BC stipulated a two-shekel prevailing wage for each sixty-gur vessel constructed under contract. This law established a specific payment standard for Mesopotamian artisan guilds between 2254 and 2218 BC.
How much did women earn compared to men according to U.S. Bureau of Labor Statistics data from 2007?
The U.S. Bureau of Labor Statistics reported in 2007 that women made approximately eighty percent of the median male wage across all races. White men earned about eighty-four percent of what Asian men made during that same period while Black men received roughly sixty-four percent of the wages paid to white men.
Why do higher public sector wages reduce corruption rates?
Higher salaries for government workers help reduce instances of bribery and unethical behavior because financial stability reduces incentives for illicit activities among civil servants. Countries with smaller wage gaps between public officials show lower corruption rates overall when pay is sufficient.
What percentage of U.S. workers earned hourly wages in 2012?
Seventy-five million workers earned hourly wages in the United States during 2012. That figure represented fifty-nine percent of all employees over age sixteen excluding self-employed individuals.