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asked ago by (2.7k points)
In the last decade capital rents have grown related to labor rents. Due to this fact I have developed a ratio that can calculate easily the wage expenditure related to profits. Profits are a measure of productivity because all output produced related to a price or value is the main image of the productivity of the workers. Based on this I have created a ratio which I call PWZ that can calculate the expenditure on wages of a firm related to its profits or productivity. This ratio can be used to compare fairness between firms or to guide policies that fix wages to their productivity. The graphic depiction is based on a Diamond-Mortensen-Pissarides Model of search and unemployment created in the late 1960s.


I would like to know your opinion. This is an old work I did years ago.

Ryan McConnell.
commented ago by (2.7k points)
edited ago by
If the company wants to include unemployment benefits into the wages pwz allows it, the normal pwz* equation solves without unemployment benefit though.

Equations allow for temporary and part job.

I thought of annual wages but it can be used with monthly wages.

Pwz solved for unemployment benefit addition is equal to: w÷((z÷Q) +10b)

*I'm sorry for my editings admins. My main job doesn't allow me rest and I'm a bit absent-minded.*

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