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What is Economic Theory of Compensation about?

Labor market theory holds that compensation is determined by the forces of supply and demand in the labor market. Employers will hire employees up to the point where their compensation equals their marginal productivity, while employees will offer their labor until the compensation is insufficient. Human capital theory views education and training as investments that increase employee productivity and compensation by developing skills. Technological changes have increased demand for skilled labor and automa

Author

Sonali Thite

Language

EN