ABSTRACT
Two aspects of the discussion of the cyclical employment effects of non-wage labour costs would appear to have some considerable bearing on the analysis of wage determination. First, several of the models suggest a cyclical relationship between actual and desired levels of workers and hours and, therefore, may be deemed to be relevant to the cyclical features of wage-change functions that incorporate excess manhour arguments. Second, the tradeoff between wages and quit rates and its relationship to Okun’s toll suggests the possibility that fixed, non-recurring NWLCs may play some part in the explanations of relative wage responsiveness to cyclical falls in product demand. An examination of these two topics, in sections 7.1 and 7.2 respectively, forms the major content of this chapter.
