transfer earnings



  • plural noun the amount which could be paid for a factor of production as it is currently being used to prevent it being used by someone else. Amounts paid above the level of transfer earnings are economic rent.

Health Economics

  • (written as Transfer Earnings)
    The minimum payment required by the owner of a factor of production to prevent it from being transferred to another use. Transfer earnings are usually lower than actual earnings (which is why the current owner has not transferred the factor.). Sometimes called 'transfer cost'.