Equilibration in the Labor Market

The competitive theory prediction that noncompensating wage differentials are liquidated in the dynamic setting is tested. Results indicate an equilibrating labor market, except for the finding that job stayers maintain positive differentials. Market contact facilitates the equilibrating process. Th...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Veröffentlicht in:Southern economic journal 1978-07, Vol.45 (1), p.192-204
1. Verfasser: Mellow, Wesley
Format: Artikel
Sprache:eng
Schlagworte:
Online-Zugang:Volltext
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
Beschreibung
Zusammenfassung:The competitive theory prediction that noncompensating wage differentials are liquidated in the dynamic setting is tested. Results indicate an equilibrating labor market, except for the finding that job stayers maintain positive differentials. Market contact facilitates the equilibrating process. The erosion of existing market differentials is 4 times greater for job changers. Market forces facilitate the worker's attainment of his potential wage at full employment. But a significant group of workers remains insulated from market forces and maintains existing rents. Under conditions of deterioration in aggregate labor market conditions, the liquidation of negative differentials declines and rents are expropriated.
ISSN:0038-4038
2325-8012
DOI:10.2307/1057626