German Wage Theories; a History of Their Development

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This Von Thiinen at- tempts to do by reducing the efficiency of capital to labor- terms. It involves the most difficult problem of determining the shares attributable to labor and capital out of a product which is the result of the two in co-operation. Before enter- ing upon this discussion, it will be perhaps best to give some explanation of the mathematical terms employed.
A represents the wages for the year of a family, including the wife and young children under fourteen years old. These wa
...ges are expressed in bushels of rye. To determine how much such a family would consume would manifestly depend upon the number of children. In this investigation it is von Thiinen's aim to find a law for the regulation of wages and rate of interest for the stationary state of society; hence the working population is supposed to be constant. Each family will therefore on the average succeed in raising a suffi- cient number of children to replace the losses by age and death. The necessaries of life, which are required to keep such an average family in labor power for a year, are assumed to be such value as is equal to the value of a bushel of rye.

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