... the minimum wage law, an employer would pay based on the marginal revenue productivity [5] of the employee. Marginal revenue productivity [6] is the change in total revenue that a company experiences when it employs one additional worker. Take for example, a firm that is making $1,000 in product revenue...

... in his wealth or revenue. John Levendis can be contacted at: jlevendi@loyno.edu © Emerald Group Publishing Limited 2008 Economic theory Economic doctrines Capital Pay Division of labour An extensive literature examines the development of the wages fund doctrine. Indeed...

.... This means that an employer could slow down pay/promotion without losing employees, but it is not inefficient to do so. This merely alters the distribution of the gains from trade in favor of the employer, but does not alter the allocation of resources in any way. There is a possibility as well...