The Public Sector and Wage Determination
The systems of wage setting and the resulting wage structures
affect economic performance. They constitute the incentive mechanism
encouraging production and the vehicle whereby the benefits from
work are distributed. Trade unions play a significant role in this
process. In the public sector, in which much of the work already
undertaken has been focused, the absence of market forces and the
intervention of the state and its various agencies act to produce
quite difference wage outcomes from those observed in the private
sector.
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