Principle to Practice

Market Effects on Wages

Market Effects are the result of changes in the local incentive structures and patterns of opportunity caused by the introduction of new resources. The new resources noticeably affect incomes, wages, profits, and prices so that people’s perception of economic winners and losers changes.

Wages

Interventions where local people are hired for jobs affect the wage structure of local communities. Such effects can increase jealousies at the personal level and, when one group has a greater representation among those who get paid than other groups, this pattern increases tensions and feeds Dividers among groups.

There can also be competition among organizations for what are seen as “qualified” staff. This can drive the wages for certain jobs up, creating incentives that can draw people out of other important sectors in order to secure higher paying jobs.

Previous Page Market Effects on Incomes
Next Page Market Effects on Profits

Related Topics
Market Effects on Prices
Market Effects
Why do negative Market Effects happen?
Using Market Effects
Resource Transfers
Critical Detail: Resources—What do we provide?

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