Planning and Budgeting

Abstract        It’s necessary to analyze the contexts and the reasons of fair wage occurrence, which itself entail the critique of marginal revenue productivity theory of wage; In addition, it’s crucial to describe the role of fair wage in refining the productivity and organizing the labor relations. In this vein, the present article, through analytical, descriptive and content analysis methods, identifies that due to involuntary unemployment and in the absence of market-clearing Walrasian wage, it’s essential to explain and operationalize all the aspects involving in formation of fair wage; otherwise the conflicts among laborers and labor :union:s in one hand, and laborers and management may arise. In confrontation with post-globalization era, and its ensuing economic crises and other dramatic changes, this theory can be useful in refining traditional theories of wage.