Wages vary with abilities employed.—The variation of wages among different classes of workmen in the same calling is universally recognized as dependent upon the powers employed. The strictly operative labor is usually paid by the hour, day or week, the terms varying with the supposed strength or skill exerted. Executive duties commanding monthly or yearly salaries vary with the total amount of responsibility implied, the large establishment requiring greater abilities than the small one. The strain of responsibility increases in some degree with the number of operative laborers employed, and successful oversight of many hands may be essential to their profitable employment. In that case the salary of the overseer gains something of the nature of profits, since the manager gauges the pay by profits expected. If, as in great stock companies, a manager is hired at a stipulated salary, his personal abilities, as tested by accomplishment, are likely to be the sole [pg 244] gauge of wages. A successful manager of a great enterprise can scarcely be said to have a market price for his services, but will estimate himself in large measure by the profits he might secure as an independent business man. Within limits, such salaries will vary with the experience and inventive ability required.
Supply and demand in wages.—Wages in general are subject as truly to the law of supply and demand as are the products of labor. If few places are vacant and many applicants seek those places, it is impossible to prevent the reduction of wages through the anxiety of some applicants to secure places. On the other hand, if few applicants seek the places open to many, each will find the employer most willing to give an increase of wages for his work. Laws cannot prevent such natural competition, though they may hinder it. Even organization under secret bonds can only temporarily restrain. Human nature is stronger than any arbitrary restriction.
In general, then, wages in any particular occupation may be affected directly by limited competition. Any necessity for peculiar abilities of body or mind, or for preparation by education or training, makes certain, as far as it goes, a limited competition, and therefore the opportunity for higher than ordinary wages. In the same way, if unavoidable hardships or dangers are involved, comparatively few workers will seek such employment and can have larger pay. If, however, the dangers carry with them a stimulating excitement and exhibition of daring, arousing admiration for the worker, this may offset entirely the effect of the danger.
Soldiers and railroad employés for such reasons do not command pay in proportion to the dangers met. Any employment where there are obstacles to natural advancement or where continuance is uncertain does not attract applicants except by higher wages. Illustrations of all these occasions for limited competition are found everywhere.
Stimulants to competition.—If any occupation shows circumstances making entrance easy for new applicants, or if advantages for promotion are readily seen, or if it seems to have a special respectability with the advantage of social privileges, especially if it in some respects seems a work of philanthropy, there will be multitudes ready to engage, and willing to undertake the work at less than average compensation. It is commonly said that these peculiar advantages are a part of the compensation. They operate simply as a stimulant to competition, making more people willing to enter such employment at small wages than would be willing without these special advantages.
A good illustration of such employments is found in common school teaching. While a teacher does need an expensive preparation, and success is dependent upon special adaptability to the work, it is nevertheless true that the work can be taken up readily and as readily laid down; it confers upon the applicant the privilege of social recognition and somewhat of personal dignity; it gives opportunities for some note in the community, and, with all, it is considered a work of philanthropic character, entitling to the gratitude of the public. The result is that teachers everywhere command less of salary or [pg 246] wages in proportion to their abilities than other classes of wage-earners. Fortunately, this stimulant to competition appeals largely to those characteristics of the individual teacher which make him more serviceable in his calling. The opportunity for a life of study, added to other considerations, makes still more effective the competition of earnest, philanthropic students, such as the world needs for teachers.
In the lower ranks of teachers, competition is still more increased by the fact that common school teaching can be temporarily carried on in the intervals of study, without interfering with mental growth. Teaching is also specially adapted for the temporary employment of young men and women not quite ready to enter the actual life work. Acquaintance with human nature, which it fosters, is thought to be good preparation for home and business life. The employments in which women largely engage as wage-earners are chiefly of this temporary character. The fact that the life work of most women must be the making of the home hinders competition in employments where long apprenticeship or special skill of any kind may be demanded. Any temporary employment not only appeals to her sense of capacity for earning wages, but seems better adapted to her future. If that employment at the same time affords opportunity for social life and calls for the natural adornments of youth, the young woman considers wages only a small part of the general consideration, and is satisfied with a bare living. Hence clerkships in stores, subordinate positions as teachers and places as typewriters are crowded with applicants at wages insufficient [pg 247] for a life-time support. Employment in domestic service, which might be supposed more consistent with the larger work of life, is rendered less attractive by the almost entire absence of social privileges and natural opportunities for advancement in knowledge of the world. Girls who would prefer house work, with equal social freedom and the natural stimulant of contact with other young people, compete for lower wages in less satisfactory employment during the years of their girlhood. This is less noticeable in country life, where girls in domestic service become a part of the household and share in the privileges of the young people at home.
Another illustration of the depressing effect upon wages of excessive competition is found in the work of women upon cheap clothing. This work is usually done by the piece in the home, and can be taken up at intervals between household duties. Many women consider earnings of this kind a mere addition of spending money to a somewhat meager support in their home life. It can be carried on without display, and so preserves the dignity of persons who would otherwise shrink from wage earning. The result is a very serious competition, reducing wages below even enough to sustain life and character.
These are only illustrations of what happens in every calling when circumstances stimulate excessive competition. Relief can come only from larger range of satisfactory employment and a clearer distinction in favor of genuine wage-earners and genuine employers among the mass of the people. The customs of society have a much stronger influence upon the life of women in steady employments than upon that of men. A thoroughly [pg 248] enlightened community can do much to enlarge the sphere of such women as are naturally wage-earners, by proper encouragement of their enterprise.
Fluctuation of wages.—Wages in every employment are just as naturally subject to fluctuation under the law of supply and demand as are prices of commodities. Whatever operates to increase the number seeking employment, or to diminish the amount of employment open to competition, reduces the wages. Whatever increases the opportunity for employment, or diminishes the number of persons seeking employment, increases the wages. This is well illustrated in the cost of harvest hands in a year of large crops as compared with a year of small crops. Any financial disturbance, checking the building of railroads and other great enterprises, brings multitudes of would-be farm hands to compete with those who naturally follow farming. On the other hand, the introduction of factories or mining industries has sometimes affected directly the wages of farm hands through a large region by lessening competition.