Wage as an important form of the income of wage earners

The source of income of the population is the new value, which is created in the process of interaction of the main factors of production, and the economic basis for their formation is the ownership of resources and factors of production, which have the ability to generate income. The transition to a market economy requires the development of a fundamentally new approach to the formation of the price of labour, which is determined on the market, based on the law of supply and demand for labour. The labour market has distinctive features and characteristics, which are determined by the fact that labour as a factor of production differs from other factors (capital and land) by the function of providing human life. The specificity of the «labour force» commodity determines the following characteristic features of the labour market, which distinguish it from other types of production factor markets. Firstly, it is the demand of employers for labour is derived from the demand for goods and services. Secondly, when concluding transactions on the labour market, besides wages, great importance belongs to other aspects of the use of labour, which include the nature and working conditions, guarantees of stability of the workplace, opportunities for professional growth, microclimate in the team. Thirdly, trade unions, employers' associations and state authorities are able to exert an active influence on the formation of the price of the commodity «labour».