A quarterly econometric study of the U.K. labour sector 1955-1966

Paranavitana, Cyril (1976) A quarterly econometric study of the U.K. labour sector 1955-1966. University of Southampton, Doctoral Thesis.

Abstract

This thesis attempts to examine systematically the determinants of t the demand for labour and hours of employment and of wages and earnings for nine different sectors of the U.K. economy over the period 1955 -- -1966. One of the main purposes of the study is to evaluate the influence of trade union interests on the behaviour of these variables. In addition, f it Seeks to investigate the interelationships of the various factors and to consider the usefulness of a statistical model of the system as a whole for predictive purposes.It is assumed that the demand for average weekly hours worked is dependent on standard weekly hours and capacity utilization whereas the level of employment is dependent upon past levels of output, capacity constraints, standard weekly hours, capital usage and the degree of tightness of the labour market.In order to explain the determinants of wage rates, a model of the quarterly wage change is formulated in the context of collective bargaining, embodying i the factors which reflect the effects of changing relative wage differentials, economy wide factors and institutional factors. The basic earnings model is a quasi-identity which relates average weekly earnings to the basic wage rate, standard weekly hours and overtime hours.The results obtained indicate that capacity constraints and institutional factors play a significant role. The predictive power of the model as a whole seemed resonably strong over the period tested.

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