ABSTRACT
This chapter considers the nature and consequences of non-competitive behaviour. It discusses firms’ monopsony power in labour markets; trade unions’ activities in the wage determination process; the operation of the labour market inside the firm; and the impact of extra-labour market noncompetitive pressures upon labour market outcomes. There are several arguments predicting non-competitive internal labour market behaviour by firms. Satisfying behaviour will encompass adherence to fairly rigid wage structures across different grades of labour and the maintenance of some slack for long periods. The basic model of the labour market assumes a competitive world in which each individual has equal opportunities on entry to the labour market. Thus, whilst the labour market itself may be competitive, market outcomes will reflect external non-competitive forces. Upper class individuals enter the competitive labour market with considerable resources and inevitably occupy jobs offering high rewards.
