The amount of fair remuneration determined on the basis of the theory of measuring human capital

Krzysztof Gaweł

doi:10.52756/ijerr.2018.v17.001

Krzysztof Gaweł Cracow University of Economics, 27 Rakowicka Street, Cracow, Poland

DOI: https://doi.org/10.52756/ijerr.2018.v17.001

Keywords: Fair remuneration, human capital model, measurement of human capital

Abstract

The aim of the article is to compare the amount of remuneration expected by employees with the salary determined on the basis of the economic constant of potential growth. Using the theory of human capital, we are able to carry out a research consisting in a combination of remuneration resulting from the minimum wage. To achieve this, an econometric model containing three variables is introduced - the experience factor [Q(T)], the component of maintenance costs [K] and the cost element of education [E]. For the sake of clarity, individual measurement models of human capital are presented along with models of fair remuneration. The obtained results prove that the model of human capital presented in the study can be used to determine the level of fair wage.

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