Wage Adjustments and Labour Market Systems: A Cross‐Country Analysis*
- 1 December 1986
- journal article
- Published by Wiley in Economic Record
- Vol. 62 (4) , 415-426
- https://doi.org/10.1111/j.1475-4932.1986.tb00907.x
Abstract
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.Keywords
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