THEORETICAL FOUNDATIONS FOR STICKY WAGES |
| |
| Authors: | James Haley |
| |
| Affiliation: | Department of Finance, Government of Canada, Department of Economics, Queen's University |
| |
| Abstract: | Abstract. The paper compares three different types of theoretical explanation of 'sticky'wages. They are implicit contracts, efficiency wage models and insider/outsider models. It then reconsiders Keynes'rationale for sticky wages, which focuses on relative wage issues. Finally, the paper considers possible directions for future research. |
| |
| Keywords: | Implicit contracts efficiency wages insider/outsider models |
|
|
