802 B
802 B
Superior Hardship and Superior Skill
Superior Hardship and Superior Skill
Definition
Additional compensation granted to labour that involves greater physical difficulty or requires exceptional abilities and training. This represents an early form of wage differentiation based on the nature of work performed.
Source Chapter
Book I, Chapter 6
Context
Discussed as factors that influence wages in both primitive and advanced societies. Smith explains that more severe labour or labour requiring uncommon dexterity and ingenuity naturally commands higher compensation, though he distinguishes this from profits of stock.
Economic Domain
Distribution