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Title: Equilibration in the Labor Market
Resulting in 1 citation.
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Mellow, Wesley |
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Equilibration in the Labor Market Southern Economic Journal 45,1 (July 1978): 192-204. Also: http://www.jstor.org/stable/1057626 Cohort(s): Older Men Publisher: Southern Economic Association Keyword(s): Employment; Job Tenure; Wages This paper tests the competitive theory prediction that noncompensating wage differentials are liquidated in the dynamic setting. Except for the finding that job stayers maintain positive differentials, our results indicate an equilibrating labor market. At the risk of oversimplification, the implication of our results for the validity of the competitive model of wage determination can be summarized as follows. At full employment, market forces facilitate the worker's attainment of his potential wage. A significant group of workers, however, remains insulated from market forces and maintains existing rents. In this respect the labor market is segmented; some workers maintain an enclave wage. A deterioration in aggregate labor market conditions reverse the scenario: the liquidation of negative differentials declines and rents are expropriated. |
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Bibliography Citation
Mellow, Wesley. "Equilibration in the Labor Market." Southern Economic Journal 45,1 (July 1978): 192-204.
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