Question

What is meant by “the iron law of wages,” and how much truth is there in it?

Answer 1

The Iron law of wages generally meant that the law of economics which tells that in the long run, the real wage of workers tends to reach at the minimum wage that is required to sustain the life of the worker or in other words, in long run , labor wage tends to reach at the minimum wage for a worker necessary to sustain a life.

well it is not always, because many modern economist believe that firms pay thier worket a premium wage than a subsistence level to make them more efficient and in the theory of efficient wage , firm pays above the market wage in order to incentivise employees and reduced the workload of experienced employees.