Wage maker
Definition
A wage maker is an individual or firm that has the power to set wages in a market. They have control over the labor supply and can influence the wage rate.
Analogy
Imagine you are the captain of a soccer team and you get to decide how much each player gets paid. You have the power to set their wages based on their skills, performance, and demand for their positions.
Related terms
Monopsony: A monopsony occurs when there is only one buyer (or employer) in a market. This gives them significant control over wages.
Labor market: The labor market refers to the interaction between workers and employers where they negotiate wages and employment terms.
Collective bargaining: Collective bargaining is a process where workers, represented by unions, negotiate with employers for better working conditions, benefits, and wages.
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