Current theory clearly demonstrates that, as far as the choice of production technique is concerned, high wage rates lead entrepreneurs to choose, from among various equally effective combinations of the factors capital and labour, the one that results in a saving of labour and a more intensive employment of capital; and conversely, that low wage rates induce them to substitute labour, which is plentiful in the less-developed economies, for capital, which is scarce.
Weitere Kapitel dieses Buchs durch Wischen aufrufen
- Levels of Remuneration, Factor Proportions and Income Differentials with Special Reference to Developing Countries
- Palgrave Macmillan UK
- Paper 4
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