Premium
Wage Adjustments and Labour Market Systems: A Cross‐Country Analysis *
Author(s) -
WITHERS G.,
PITMAN D.,
WHITTINGHAM B.
Publication year - 1986
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1986.tb00907.x
Subject(s) - economics , wage , labour economics , balance (ability) , causality (physics) , medicine , physics , quantum mechanics , physical medicine and rehabilitation
Evidence is presented on how well alternative systems of wage determination facilitate disaggregate labour market adjustment. Tests of statistical causality are used to relate labour market pressure to relative wage changes. The conclusion is that rates of change of relative wages are determined independently of the microeconomic market balance. This result holds irrespective of the institutional form of the wage‐fixing system.