 | Wage Determination
In this chapter you will learn:
- Why labor productivity and real hourly compensation track so closely over time.
- How wage rates and employment levels are determined in competitive labor markets.
- How monopsony (a market with a single employer) can reduce wages below competitive levels.
- How unions can increase wage rates.
- The major causes of wage differentials.
- The types, benefits, and costs of "pay-for-performance" plans.
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