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# Piece-Work Wages

## Definition

A system of compensation where workmen are paid by the piece rather than by time, which Smith observes leads to greater activity and diligence among workers, though sometimes resulting in overwork and health damage when wages are high.

## Source Chapter

Book I, Chapter 8

## Context

Discussed as a wage system that encourages industriousness but requires moderation to prevent workers from ruining their health through excessive application.

## Economic Domain

Distribution

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