Title: An analysis of the determinants of money wage change in Jamaica 1958-1964
Abstract: The possibility that the economic and political strength of unions distorts the level of wages in Jamaica is investigated. A series of equations is used to examine four distinct money wage variables - skilled weekly wage rates, unskilled weekly wage rates, office weekly wage rates, and average weekly earnings. A strong relationship exists between money wages and productivity both in explaining the variation in wages among industries and the changes in money wages over time. Wage changes and wage levels depend on productivity changes. A major implication of this analysis is that high wages are not the cause of the continuing high rate of unemployment since wage changes have not kept pace with productivity gains. Money wages are not a major determinant of inflation. Jamaica's promotion of a straight income maximizing policy results in both income growth and high unemployment. Thus, there is an apparent trade off between employment and income growth. A goal of full employment rather than maximizing income per capita might change the investment priorities and, consequently, the institutions designed to foster investment.
Publication Year: 1967
Publication Date: 1967-10-31
Language: en
Type: article
Access and Citation
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot