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On institutions and wage determination

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Abstract

This paper examines the difficulties encountered in incorporating necessary institutional features of the labor market in wage change analysis. A simple ‘institutional’ model is advanced to clarify the method and implications of the incorporation of the relevant institutional detail. Certain lacunae of the research literature are identified and the need for relations supplemental to those already identified in that literature emphasized. Further process in applied work necessitates,inter al., recognition of the endogeneity of contract length and mode.

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Addison, J.T., Burton, J. On institutions and wage determination. Journal of Labor Research 2, 99–109 (1981). https://doi.org/10.1007/BF02685124

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