<P> Depending on the structure and traditions of different economies around the world, wage rates will be influenced by market forces (supply and demand), legislation, and tradition . Market forces are perhaps more dominant in the United States, while tradition, social structure and seniority, perhaps play a greater role in Japan . </P> <P> Even in countries where market forces primarily set wage rates, studies show that there are still differences in remuneration for work based on sex and race . For example, according to the U.S. Bureau of Labor Statistics, in 2007 women of all races made approximately 80% of the median wage of their male counterparts . This is likely due to the supply and demand for women in the market because of family obligations . Similarly, white men made about 84% the wage of Asian men, and black men 64% . These are overall averages and are not adjusted for the type, amount, and quality of work done . </P> <P> Seventy - five million workers earned hourly wages in the United States in 2012, making up 59% of employees . In the United States, wages for most workers are set by market forces, or else by collective bargaining, where a labor union negotiates on the workers' behalf . The Fair Labor Standards Act establishes a minimum wage at the federal level that all states must abide by, among other provisions . Fourteen states and a number of cities have set their own minimum wage rates that are higher than the federal level . For certain federal or state government contacts, employers must pay the so - called prevailing wage as determined according to the Davis - Bacon Act or its state equivalent . Activists have undertaken to promote the idea of a living wage rate which account for living expenses and other basic necessities, setting the living wage rate much higher than current minimum wage laws require . The minimum wage rate is there to protect the well being of the working class . </P> <P> For purposes of federal income tax withholding, 26 U.S.C. § 3401 (a) defines the term "wages" specifically for chapter 24 of the Internal Revenue Code: </P>

What are the major determinant of workers pay