Staggered wage settlements, in comparison with simultaneous settlements,
A) provide more information about relative wages and prices automatically during any negotiation process.
B) provide some added and sometimes valuable stability in wages and prices.
C) seem to be a natural part of a decentralized labor market.
D) all of the above.
E) none of the above.

Question

Quizplus · Accepted Answer

Staggered wage settlements offer a mechanism where wage negotiations and adjustments happen at different times across various sectors or companies. This approach can indeed provide more information about relative wages and prices during negotiations, as each settlement can take into account the most recent agreements in other sectors. It also adds stability to wages and prices because not all wages are renegotiated at the same time, preventing sudden, economy-wide shifts in wage levels. Lastly, staggered settlements are a characteristic of decentralized labor markets, where wage negotiations are conducted individually by each sector or company rather than being centrally coordinated.

Staggered Wage Settlements, in Comparison with Simultaneous Settlements