Glamor Economics

Chapter 50

Chapter 7, Section 4 is also part-time work, why is there such a big difference—labor remuneration

In 2004, Tang Jun was hired by Shanda boss Chen Tianqiao with an annual salary of 500 million yuan and a sky-high price of 260 million stock options, which once triggered a debate about whether Tang Jun was worth the price.

When Tang Jun joined Shanda, Shanda Group was sprinting towards NASDAQ.Tang Jun went to Wall Street to do a road show for Shanda stock. At that time, the stock price was 26 US dollars per share; when Tang Jun left Wall Street, the stock price had risen to 37 US dollars per share.In two weeks, Tang Jun created a stock market value of 8 million US dollars for Shanda.Tang Jun led Shanda to go public successfully.

After that, Tang Jun and Chen Tianqiao also completed more than 10 mergers and acquisitions, including the controlling stake in South Korean game developer Actoz.Through negotiations with the South Korean side, Tang Jun finally managed to bring it under Shanda's banner at a price lower than Shanda's bottom line of 900 million US dollars.The acquisition of Actoz is of great significance to Shanda. Since then, Shanda has created a precedent for a downstream company in the online game industry chain to acquire an upstream company, and its competitiveness is stronger.And with the horizontal acquisition of network platforms such as winger, digital red, Haofang, Qidian.com, Shanda quickly established the dominance of online games.

On April 2008, 4, Tang Jun bid farewell to Shanda and handed over a satisfactory report card to the world.

According to economists, wages are the price of labor and the labor remuneration paid to laborers in the form of currency.It is as much a matter of supply and demand as any good.In the labor market, workers provide labor, which is the supply of labor, and enterprises hire labor, which is the demand for labor.When the supply of labor is equal to the demand, it determines the wage level in the market, which is called the equilibrium wage.Therefore, the level of wages depends on the supply and demand of labor.The wages and remuneration received by laborers will vary due to differences in quality, industry, and division of labor.The main reasons behind the wage gap are as follows.

1. Differences in labor quality

Judging whether the social status is high or not, and the salary is much less, we should not simply look at whether the education is high or not, but whether the labor value created by him is directly proportional to the salary.

2. Industry differences

In a perfectly competitive labor market, no boss would be willing to pay a worker more for his work than a worker of the same or similar skill.This means that we must account for differences between industries when explaining wage differences across industries.

3. Differences between types of work

Some of the great disparity between jobs is due to differences in the quality of the jobs themselves, which differ in their attractiveness, so wages must be raised to induce people into those jobs which are less attractive.For example, the salary of a person who works the night shift is generally higher than that of a person who works the day shift.

4. Differences among different individuals

The labor efficiency of different workers is also different. In order to reward hard work and punish laziness, we need to give high wages to those with high labor efficiency to reward them for their hard work; and give low wages to low-efficiency people to encourage them to improve their work and increase their work efficiency. .

[links to related words]

Labor wages refer to the labor remuneration paid to employees (including basic wages, business commissions, and bonuses), excluding various allowances and subsidies.According to Marx, wages are the monetary expression of the value of a worker's labor power.The value of labor power is the value of the means of subsistence which sustain the continuation of the worker's existence.The monetary expression of the value of labor power is wages.

Total wages refer to the total amount of labor remuneration directly paid by each enterprise to all employees of the enterprise within a certain period of time.The calculation of total wages shall be based on all labor remuneration paid directly to employees.

The total salary consists of six parts: hourly wages, piecework wages, bonuses, allowances and subsidies, overtime wages, wages paid under special circumstances, including sickness, work injury, maternity leave, and family planning leave according to national laws, regulations, and policies. Wages paid according to the hourly wage standard or a certain percentage of the hourly wage standard for reasons such as wedding and funeral leave, personal leave, family leave, regular vacation, suspension of work and study, and implementation of national or social obligations.

(End of this chapter)