ABSTRACT
This chapter provides a complete theory for the firm, with broader aspects of wage theory for the industry, and with more general concepts of economic and social behavior. It refers primarily to single plants or establishments, but also to multiplant firms, depending upon their policy and environment. The concept of the internal wage structure is a significant approach to wage-rate analysis. The influence of the labor market upon the wage structure can best be approached by a descriptive type of analysis. The basic premise is that internal job-content comparison as a basis for wage-rate determination is stronger, and of a somewhat different character, within certain groups of jobs than between them. Job-content comparison as a basis for wage-rate determination is felt to be strong within narrow clusters, somewhat weaker between narrow functional groups, and of least significance in relating broad clusters.
