Microeconomics is concerned with how labour markets determine salaries.
Explanation:
The functioning of domestic markets and its elements are the subject matter of microeconomics. The salaries in the labour markets are dependent on how well the market performs.
Factors like inflation, the demand for labour, the availability of labour, the skill set of the labour, the expectations of labour, advancements in technology and mechanisation, etc., impact the determination of salary directly and indirectly.
