Final answer:
Wages are influenced by minimum wage laws, safety and working conditions, technology and automation, and labor unions. Additionally, the supply and demand for specific skills in the job market play a crucial role in determining wages.
Step-by-step explanation:
When determining wages, several key factors are considered that influence how much an employee earns. These include:
- The existence of minimum wage laws, which set the floor for the lowest wage an employer can legally pay an employee.
- Safety laws and working conditions, where sometimes wages might decrease if workers are willing to work for less in exchange for a safer work environment.
- The impact of technology and automation, as companies may seek to replace human labor with machines to reduce wage costs.
- Activities of labor unions, which can negotiate higher wages and better working conditions for their members.
Additionally, wages are influenced by the supply and demand for certain skills in the job market. Workers with skills, education, or training that are in short supply generally command higher wages.