chapter  73
8 Pages

THE FORMATION OF WAGES IN THE MODERN LABOR-MARKET

The idealizing assumptions, with the aid of which we deduce the theory of wages, have never been realized in the past, nor are they in the present labor market. They are the instruments of investigation which serve as a starting point for an empirical theory. With decreasing abstraction such a theory will replace them in due course by assumptions adjusted to the typical indices of supply and demand in the modern labor market. The latter has reached its large dimensions by the spread of large scale capitalistic industries, but it is not confined to the workers in these enterprises. It embraces all the remaining industrial and agricultural laborers in a further series of partial markets.