Wage Bargaining and Behaviour of Talented Labour in the Defence Market

Wage Bargaining and Behaviour of Talented Labour in the Defence Market

One of the enduring issues of business cycle theory has been the search for a theoretical framework that would aid apprehending the behaviour of wage rates in times of undulations in employment with respect to output. There has been a focus on how real wage movements can be affected by a business cycle and studies showed that there is no systematic pattern . The demand for labour would naturally, ceteris paribus result in a rise in employment but not necessarily in the wage rates.