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How to End Pay Leapfrogging (1990)

In: Tackling Unemployment

Author

Listed:
  • Richard Layard

    (London School of Economics and Political Science)

Abstract

It is easy to see why uncoordinated bargaining has such bad effects. We can begin by looking at what it does to wages claims. In a decentralised bargain workers in one sector can, if successful, raise their wages relative to other wages and thus to the general price level. This will in the process also raise the relative price of what they produce, but the workers concerned will not mind this (provided the employment effects are not too severe).

Suggested Citation

  • Richard Layard, 1999. "How to End Pay Leapfrogging (1990)," Palgrave Macmillan Books, in: Tackling Unemployment, chapter 20, pages 440-450, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-37920-6_20
    DOI: 10.1057/9780230379206_20
    as

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