Wage determination refers to the process by which the amount of compensation paid to workers is established. This process can be influenced by various factors, including supply and demand for labor, worker skills, and industry standards. Employers often consider these elements when setting wages to attract and retain qualified employees. Additionally, government regulations and collective bargaining agreements can play significant roles in wage determination. Minimum wage laws set a baseline for earnings, while unions may negotiate higher wages for their members. Overall, wage determination is a complex interplay of market forces, regulations, and negotiations that shapes how much workers earn.