Friday, March 23, 2007

On Wages, Value, and Right Relationship

When asked to set a wage, one must first select a philosophy/perspective to provide a basis for the choice. The philosophy/perspective should define what it means for a wage to be appropriate.

My own definition of an appropriate wage is guided by economic theory and by scripture. Economic theory and scripture provide a very strong and clear view of an appropriate level of wages. (Note that the level of wages implied by economic theory and scripture may be quite different from the level of wages implied by theories of "just wages." In particular, the level of wages implied by economic theory and scripture is likely to be lower than that implied by theories of "just"
wages.)

Economic theory implies that if markets are competitive, workers and firms have equal bargaining power, and workers will be paid a wage equal to the value of their contribution. (More precisely, the wage will equal the marginal product of labor - the partial derivative of the production function with respect to the labor input.) If markets are not competitive, firms have power that workers do not. And firms may use this power to pay a wage below the value of the contribution made by the worker. Economists refer to such wages as "exploitative," since they are observed when bargaining power is unequal, and the party with more power "exploits" their position at the expense of the other party.

It is at this point that scripture guides us. We are called as Christians to be in right relationship with others. When I ask my students what a "right" relationship is, they typically reply with what I call the "50-50" response. I.e., a right relationship is one in which no party has greater power than the other (or in which no party exploits greater power that they may have). Scripture appears to provide a similar response. It is my understanding that the word "exploit" is found only in a few instances in the Bible - at least in the King James version. However, the Bible frequently warns us against "oppression" of others. (Interestingly, these warnings appear primarily in the Old Testament, with far fewer references in the New Testament as best I can tell.) For example, Leviticus 25:14, Hosea 12:7, Micah 2:2, suggest to me that we should not "oppress" another in trade or any other interpersonal dealings. I translate this language to mean that we should not exploit our market power over others, whether the stakes in play are by our own judgment trivial or significant.

Economic theory, combined with guidance from scripture, thus suggests to me that we as a Christian church are required to pay wages equal to the value of the contribution made by the workers we hire. If the market for church musicians in churches similar to 2PC is competitive, then we need not think very much about the appropriate level of wages. The market will tell us what level is appropriate. However, if the market for church musicians in churches similar to 2PC is NOT competitive, then the market should not inform our choice of wage, as the market wage is likely to be exploitative. Instead, we must decide what the value of the contribution of the musician is to our worship and church. And we must pay a wage equal to that estimated value. And we must NOT ask for a contribution in quality or quantity that lies above that estimated value.

It is my current view that the market for our Pastoral Musician is not competitive. (Perhaps someone can convince me otherwise - I have a couple of queries out to people who may be able to do that.) I would thus ask each of you, how important is music in your worship life and in the life of 2PC? And what value do you place upon the contribution to music at 2PC made by a "Pastoral Musician." Put differently, what quality and quantity of contribution would you like to experience, and how much are you willing to pay for it? $5 per week? $10 per week? $20 per week? That may sound like an odd question. But it is precisely the question we must ask, according to the above argumentation. The wage offered by the Search Committee implies an average valuation of $4.37 - $5.24 per week, per attendee (based on average attendance of 110 persons each week, as recorded in documents made available to Session by our Clerk, Don Beimdiek).

Is $5 per person per week your estimated value of the contribution of a Pastoral Musician to worship and music ministry at 2PC? If so, is the quantity and quality of work that would be provided by a candidate with a Master's degree in music (the preferred (though not required) candidate according to our ad) equal to $5 per person per week. If your answer to these question is "yes," then the wage offered is appropriate, as informed by economic theory and scripture. If your answer to either of these questions is "no," then the wage offered is either too low, or we have asked for too much.

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