Insider Forces and Wage Determination.
This paper investigates the relative importance of firm-specific factors (i.e., insider forces) in wage determination. Using firm-level data on 219 U.K. companies over 1974-82, it finds that a 1 percent rise in a firm's prices or productivity relative to the aggregate economy leads to a rise in relative wages of 0.1-0.2 percent. As a corollary to this, outside factors, like the aggregate wage and the unemployment rate, also play an important role. There is evidence for insider-based hysteresis effects, but these are inversely related to the extent to which firms take national agreements into account. Copyright 1990 by Royal Economic Society.
Year of publication: |
1990
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Authors: | Nickell, Stephen J ; Wadhwani, Sushil |
Published in: |
Economic Journal. - Royal Economic Society - RES, ISSN 1468-0297. - Vol. 100.1990, 401, p. 496-509
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Publisher: |
Royal Economic Society - RES |
Saved in:
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