Wage Subsistence Theory

Japanese: 賃金生存費説 - ちんぎんせいぞんひせつ

The theory that wages are determined by the cost of survival for workers and their families. Ricardo formulated it using Malthus's "Essay on the Principle of Population" as a medium. He said that the market price of labor (wages) will tend to eventually coincide with the cost of survival for workers (the natural price of labor) through the process of rising wages → population growth (increased supply) → falling wages → population decline (decreased supply). → Iron Law of Wages

Source : Heibonsha Encyclopedia About MyPedia Information

Japanese:

賃金は労働者とその家族の生存費によって決定されるとする説。リカードがマルサスの《人口論》を媒介として定式化。労働の市場価格（賃金）は，賃金上昇→人口増加（供給増大）→賃金下落→人口減少（供給減少）という過程を経て，結局労働者の生存費（労働の自然価格）に一致する傾向があるとした。→賃金鉄則説

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