ABSTRACT
In the case of Scheme B the reason for such a result is more straightforward. If an individual employer concedes a rise in the wage rate which does not apply to any of his competitors or in any other sector of the economy, his money profit and so his real profit will be reduced by the increased wage bill plus the increased tax (or the reduced subsidy) payable on the increased wage bill. He obviously stands to lose more from a conceded wage increase under Scheme B than he would in the absence of the scheme, and his resistance to a wage claim may be pro tanto increased.
