Citation Blanchflower D & Oswald AJ (1988) Internal and External Influences Upon Pay Settlements. British Journal of Industrial Relations, 26 (3), pp. 363-370. https://doi.org/10.1111/j.1467-8543.1988.tb00756.x
Abstract This article discusses the impact of internal and external influences of labor market on wage settlements in Great Britain. It is important to make clear that all union bargaining models of wage determination can generate similar predictions. The classical theory of the labor market is quite different. Under competitive conditions, the wage an employer pays is neither under his control nor under that of his workers. The going rate of pay is fixed by conditions in the whole economy, and most especially by the total demand for and supply of labor.
Journal British Journal of Industrial Relations: Volume 26, Issue 3