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Stable Sets And Steady Wages

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  • John Moore

Abstract

This paper uses the notion of the Stable Set, in conjunction with a mild restriction on the extent to which a firm can quickly replace its entire workforce, to explain equal treatment across workers within a firm yet wage differentials across firms, and why a firm responds with quantity rather than with wage adjustments to shocks.

Suggested Citation

  • John Moore, 2007. "Stable Sets And Steady Wages," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(5), pages 721-730, November.
    • Handle: RePEc:bla:scotjp:v:54:y:2007:i:5:p:721-730
    DOI: 10.1111/j.1467-9485.2007.00438.x
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    Cited by:

    1. Jonathan Thomas, 2000. "Fair Pay and a Wagebill Argument for Wage Rigidity and Excessive Employment Variability," CESifo Working Paper Series 234, CESifo.
    2. Jonathan P. Thomas, 1999. "Fair Pay and a Wagebill Arguement for Wage Rigidity and Excessive Employment Variability," Discussion Paper Series, School of Economics and Finance 199919, School of Economics and Finance, University of St Andrews.
    3. Andy Snell & Jonathan P. Thomas, 2010. "Labor Contracts, Equal Treatment, and Wage-Unemployment Dynamics," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(3), pages 98-127, July.

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