There are two competing economic theories for what determines wage levels in the marketplace. The classic model is based on long run lasting effects from the expansion and contraction of the economic cycle which in turn drive wage rates; essentially tying wages to supply and demand for labor over time. The alternative model, which has been gaining support since the 1990s, is that wage levels are driven by what economists call "contemporaneous conditions".
|
Top Stories: Lodging & Gaming
|
Top Stories: Human Resources
|