Labour Force and Wage Relations

Labour refers to any human effort put to work with the aim of producing goods and services; excluding leisure and honorary works. The payments made for the labour service offered are referred to as wages.
Minimum wage refers to lowest payment given to an employee by the employer. This is usually imposed by governments to ensure unskilled labour earn a fair living like the rest of the workers; also, this has encouraged workers who used to hop from one company to the other seeking better a pay. It makes workers gain experience in their field of practice.
Minimum wage has a negative effect of reducing total employment because employers are afraid of having many workers who end up getting paid more than the output. However, it has been agreed that the minimum wage has overall advantages compared to its disadvantages. Minimum wage laws effected on July 2016 by the United States federal government states that every worker is supposed to be entitled to the lowest pay of 7.25 dollars per hour.
In efficiency wage model of payment wages may vary from one employee to the other in same company doing the same job. This mode of payment views payment as an incentive to workers who put effort and their time to the work given to them. Monopoly prices arises when a firm or an industry producing a product has no competitor in that given field. This gives an organisation or a firm the power to set its labour prices.
In most times, the company takes advantage of this by paying the labours a crippling amount, even when they are receiving a huge profit.

Governments find this inappropriate since it is a mode depleting the citizens. This has led to anti-monopoly laws and anti-trust bodies such as to mitigate such laws.