If we ask why the labor market did not give rise to the predicted one wage, one possible reason might be because the law of one wage describes a situation of long-run equilibrium, while real-world labor markets are in a constant change. A second reason is because the market for a specific skill in a specific location may be violated by one or more of the five pillars of wage determination. A factor or circumstance that causes a market to diverge from competitive ideal is called a market imperfection. The more serious the imperfections in a labor market the more that the outcome of the wage determination process will diverge from the predicted outcome of competitive theory.
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