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Explain the productivity theory of wages as propounded by Kautilya.

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Kautilya was of the opinion that the wages should be in proportion to the amount of labour done by the worker and the time engaged in that production. The worker should be given the wages only for the work done by him. Wages should be given to the cotton-worker, looking at the thickness and quality of the yam. He was of the opinion that the salaries of government employees should be commensurate with their qualifications and work capacity.

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