Abstract
Theory: The theory addresses the forces that determine the real wages which workers receive. It is proposed that in the free market system, worker power plays a crucial mediating role between economic considerations involving labor supply and productivity, and the real wages available to workers in the economy. Hypotheses: In moderate and weak worker power countries, real wages will vary inversely with the labor supply in terms of domestic unemployment and international trade. In strong worker power countries, real wages will vary with changes in productivity and inflation. Methods: Separate regression analyses are developed for 10 countries varying in their level of worker power, over a 30 year time frame. Results: In moderate and weak worker power countries, changes in real wages were best predicted by levels of unemployment and changes in global trading. In strong worker power countries, changes in real wages were best predicted by changes in productivity and inflation, although in one case of a strong worker power country, a significant positive association occurred between global trading and real wages.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
