How do wages to labour compare with profits to entrepreneurs? This question has been of interest to economists and policy makers and industry associations and trade unions alike since Adam Smith and Karl Marx.
Wages and profits are the two major sources of national income, the other two being interest paid to capital and rent paid to land. In India, the official statistical machinery does not produce the complete break-up of the national income by these factors of production. The reason for this is that a large part of the Indian economy is in the unorganised sector where it is
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper