Abstract
This paper reviews the process of short-run adjustment in labour markets in response to structural change. A basic framework for analysis is presented and empirical tests of the role of wages in adjustment are considered. It is argued that conventional correlation tests are mis-specified. Alternative tests are therefore proposed and applied, providing support for the Tobin-Solow view of the labour market as one of disaggregate disequilibrium.
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© 1983 International Economic Association
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Withers, G., Freebairn, J. (1983). Structural Change and Labour Market Adjustment. In: Weisbrod, B., Hughes, H. (eds) Human Resources, Employment and Development. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-22741-9_8
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DOI: https://doi.org/10.1007/978-1-349-22741-9_8
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-22743-3
Online ISBN: 978-1-349-22741-9
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