Question

why do people sell their labor to an organization?

Answer 1

Since there are four factors of production, land, labor, capital and entrepreneur.

So an entrepreneur use his money for purchasing purchasing land, labor and capital and produces some output and sell in the market and earn surplus value.

On the one hand, it is good for society by providing employment of labor and resources but on the other hand Entrepreneur exploit the labor and resources, so in this way it is not good for society.

People sell their labor to an organization because by selling their labor they can earn money and that money is required for meeting their needs. For earning money people need to work either as independent or work in the organization.