wages-fund

The company's wages-fund is used to pay all employees on the first of the month.

Definition

1. Noun (singular, often used as a compound noun):
   • Economic theory: "Wages-fund" refers to a fixed amount of capital set aside by employers in a given period (typically a year) to pay wages to workers. This concept was central to 19th-century classical economics, particularly in the "wages-fund doctrine," which held that the total wages available to labor were predetermined by this fund, limiting the possibility of raising wages without reducing employment.
   • Historical context: The term describes a theoretical pool of money from which all wages must be drawn, implying that workers' earnings could not exceed the fund's size.

Usage Examples

• (The fixed capital pool limits total labor compensation.)
• (Theoretical objection to the fixed nature of the wage pool.)
• (Historical reference to classical economic thought.)

Advanced Usage

• "Wages-fund doctrine": A specific economic theory holding that wages are determined by the ratio of the wages-fund to the number of workers.

  • The wages-fund doctrine was widely accepted until the late 19th century, when it was challenged by marginal productivity theory. (Historical economic debate.)

• "Fixed wages-fund": The assumption that the fund is predetermined and cannot be expanded in the short run.

  • Under a fixed wages-fund, any increase in wages would require a decrease in the workforce. (Logical implication of the theory.)

Variants and Related Words

• Wage-fund (n): Alternative spelling of "wages-fund," with the same meaning.
  • The wage-fund model assumed capital for wages was static. (Synonymous usage.)
• Wages-fund doctrine (n): The theoretical framework surrounding the concept.
  • The wages-fund doctrine influenced early labor policy discussions. (Historical economic idea.)

Synonyms

• Wage pool: a collection of money allocated for paying wages.
  • The wage pool was insufficient to cover all workers' demands. (Similar concept without the theoretical baggage.)
• Labor fund: a fund specifically designated for labor compensation.
  • The labor fund was exhausted by the end of the quarter. (General synonym.)

Related Idioms

• "Draw from the wages-fund": to allocate money from the theoretical pool for wages.
  • The factory owner could only draw from the wages-fund what had been reserved. (Historical usage in economic texts.)

Phrasal Verbs

• No phrasal verbs directly associated with "wages-fund." The term is a noun compound and does not form phrasal verbs.