In an economy, markets determine prices and quantities. In the labour market, prices refer to wages and quantity refers to the number of people employed. Relative wage levels are an extremely important device in our economy because of the way they allocate productive resources. Using Ceteris Paribus labour will tend to move to sectors where wage levels are highest. As such there are a number of methods by which wages and conditions are determined in …
showed first 75 words of 2065 total

showed last 75 words of 2065 total
…individuals all play a part in the wage determination process. In my opinion the decentralised system offers a lot more to the employee as it is easier for them to work on a production for pay basis, so the more effort, the more reward. Some aspects could still be worked on however ever since the centralised approach was abandoned the Australian economy and wage determination process seems to be heading in a much stronger direction.