<abstract xmlns="http://www.w3.org/1999/xhtml"><p>Already classical economists took interest in the role of wages and wage formation mechanisms, as well as in their influence on other components of the labour market. This article aims to systematise contemporary approaches to wages as one of the labour market components that have been developed within major economic theories. The systemization will serve as a basis for identifying main interactions between wages and other labour market components, such as labour supply and demand and labour market disequilibrium. The article presents major concepts formulated within neo-classical and Keynesian theories, labour market segmentation theories, efficiency wage theory, rent-sharing and rent-extraction theories, theory of job search, and search-and-matching models. One of the conclusions arising from the discussion is that the evolution of contemporary labour markets is a challenge for researchers seeking wage formation models adequately describing the real-life circumstances.</p></abstract>

Already classical economists took interest in the role of wages and wage formation mechanisms, as well as in their influence on other components of the labour market. This article aims to systematise contemporary approaches to wages as one of the labour market components that have been developed within major economic theories. The systemization will serve as a basis for identifying main interactions between wages and other labour market components, such as labour supply and demand and labour market disequilibrium. The article presents major concepts formulated within neo-classical and Keynesian theories, labour market segmentation theories, efficiency wage theory, rent-sharing and rent-extraction theories, theory of job search, and search-and-matching models. One of the conclusions arising from the discussion is that the evolution of contemporary labour markets is a challenge for researchers seeking wage formation models adequately describing the real-life circumstances.

Wages in Labour Market Theories

University of Lodz, Faculty of Economy and Sociology, Department of Economic Policy, Rewolucji 1905 r. no. 39, 90-214 Łódź, Poland

University of Szczecin, Faculty of Economics and Management, Institute of Management and Investment, Mickiewicza 64, 71-101 Szczecin, Poland

Folia Oeconomica Stetinensia

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Wages in Labour Market Theories"}

Already classical economists took interest in the role of wages and wage formation mechanisms, as well as in their influence on other components of the labour...

Wages in Labour Market Theories

Published Online: Apr 30, 2016

Page range: 177 - 190

Received: Jul 01, 2015

Accepted: Nov 05, 2015

DOI: https://doi.org/10.1515/foli-2015-0044

Keywords
labour market, wages, labour supply, labour demand

© 2015 University of Szczecin

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Wages in Labour Market Theories

Published Online: Apr 30, 2016

Page range: 177 - 190

Received: Jul 01, 2015

Accepted: Nov 05, 2015

DOI: https://doi.org/10.1515/foli-2015-0044

Keywordslabour market, wages, labour supply, labour demand

© 2015 University of Szczecin

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
labour market, wages, labour supply, labour demand