Dynamic Wage Bargaining and Labour Markets

Forward-looking behaviour and its consequences, and a thorough examination of the importance of recruitment and retention of workers, is feasible and useful for analysing more realistic/plausible wage determination. The core chapters in this book firstly, empirically show, using two different types of dataset, how wages are determined, which is in contrast to all previous studies in labour economics; second, they provide an analysis of how to analyse the consequences of forward-looking behaviour within a rational expectations equilibrium framework.