Wage determination can be fundamentally different in the public sector compared to the private sector. a) One of the concerns is that there are insufficient checks to inhibit the parties engaged in current bargaining from passing cost increases to future generations of taxpayers. Discuss why and how this may occur, and discuss and explain any market checks that may exist to inhibit such cost shifting. b) Discuss whether discrimination would be greater or less in the public compared to the private sector, and why. c) Discuss whether efficiency wages should be more prominent or less prominent in the public compared to the private sector. Be sure to briefly explain the meaning of efficiency wages.

Q&A Education