Wages in the Business Cycle: An Empirical and Methodological Analysis

By Jonathan Michie

Book information

Publisher
Bloomsbury
Year
1987
ISBN
9781472553911, 9781472513182
Format
PDF
Filesize
15 MB (15978447 bytes)
Series
Bloomsbury Academic Collections: Economics
Pages
\197
Library
bloomsburycollections.com
Time added
2023-07-01 02:08:05

Description

During prolonged economic recessions when the normal cyclical expansion of output fails to materialize, the topic of the ‘cyclical behaviour of wages’ has emerged as an area of debate. In 1985, the British Treasury claimed that academic studies into the cyclical behaviour of wages demonstrated that a cut in wages would increase employment. Wages in the Business Cycle contests this argument by presenting the results of original, empirical work which illustrates the absence of any systematic empirical regularity to wage movements over the business cycle. Jonathan Michie argues that the re-emergence of this debate must be seen within the context of the theory of the ‘labour demand function’, representing an attempt to challenge the Keynesian theoretical assumptions implicit in the bulk of applied macro economic work up to the late 1970s.

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