Structural Change and Labour Market Adjustment

  • Glenn Withers
  • John Freebairn
Part of the International Economic Association Series book series (IEA)


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.


Labour Market Industrial Relation Excess Demand Relative Wage Employment Change 
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Copyright information

© International Economic Association 1983

Authors and Affiliations

  • Glenn Withers
    • 1
  • John Freebairn
    • 1
  1. 1.Australia

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