The wage is affected by the qualification of the employee, his professionalism, and the quality of the work he performs. For professions that do not require special training, its size is not very high, but the elasticity of the offer is higher , since workers do not need to receive training. Accordingly, those employees who previously undergo lengthy training, accompanied by high costs, have higher salaries.
Employees earn income consisting of two components. The first is retention wages (for non-transfer). And their second component is economic rent. It is interpreted in the most general sense as income derived from a factor that is distinguished by an inelastic supply of labor. Partly economic rent is contained even in cases with elastic supply, the exception is only those cases when it is elastic to infinity. There are several cases of relations between it and wages. The receipt of economic rent by workers and its volume depends on how flexible the labor supply is. There is a minimum level of payment that a person agrees to receive for their services. If the salary drops even lower, the employee will either move to another industry or refuse to offer labor at all. When market conditions are in equilibrium, each employee receives a payment slightly above the minimum level. There are also employees whose wages are at the highest level with the minimum that they can accept. The variable value of the labor used determines the size of the salary.
All previous explanations lead to a more precise definition of economic rent. It better corresponds to the economic relations that have developed at the present stage. So, economic rent is a fee that exceeds the costs of the possible use of a resource. In practice, this looks like a payout that exceeds the employee’s salary.
In other words, financial rent is the surplus of the resource owner that the owners of the labor factor receive.
The mobile labor market is represented by workers who are not qualified and easily change their place of work (either they wash the floors, then they unload the machines, then the newspapers carry them). All their income - this is the holding salary. In this case, there is no permanent rent.
Another unique case is that the labor offer is absolutely inelastic. This is a non-standard resource. In this case, the costs of its possible use are equal to zero. Economic rent, of course, will be paid, but its size depends entirely on the demand for specific employee services. The demand curve significantly affects its value and can even drop to zero during periods of falling interest in a particular type of activity.
Differences in wages are formed objectively, since people with different professions cannot migrate from one resource to another without hindrance. To get a better idea of the income earned by employees, you need to turn to the issue of human capital. This is the extent to which a person can generate income. It is a combination of acquired and innate human qualities, and the border between them is very blurred. For example, abilities, talents, health, physical strength can be both innate and acquired by a person as a result of classes, training. The costs of acquiring the right qualities by a person are borne by the state, employers, and the employee himself. And human capital is capable of forming throughout the life of a particular individual.