>As people detach from the labor force, they cease to be part of the
>wage-setting process. Their skills erode and employers become less
>willing to hire them. Having these gradations of detachment help
>clarify all that.
As people detach from the labour force, the supply of labour is reduced. Consequently having a positive impact (for the working class) on the balance between supply and demand for labour. Unless we assume that the labour supply/demand balance has no impact on wages, we can not insist that "As people detach from the labor force, they cease to be part of the wage-setting process."
The employing class certainly presume that the supply of labour has an impact on the cost of labour, that's why they get hysterical at the idea of welfare for the able-bodied poor (or even the disabled poor) enabling the working class to withdraw their labour.
Bill Bartlett Bracknell Tas