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Published on Aug 30, 2009
http://trcb.us/zaheer - Wage is compensation paid to a worker by the employer for services rendered. Theoretically it is based upon how much value the worker adds to the product produced. But practically it is impossible to measure it and separate it from the values added by the other three factors of production: land, capital, and entrepreneurship. Also in case where the entrepreneur is self-employed it is all the more difficult to separate the value added as a worker from value added as the entrepreneur.