Understanding sectoral differences in downward real wage rigidity : workforce composition, institutions, technology and competition
by Philip Du Caju, Catherine Fuss and Ladislav Wintr
This paper examines whether differences in wage rigidity across sectors can be explained by differences in workforce composition, competition, technology and wage-bargaining institutions. We adopt the measure of downward real wage rigidity (DRWR) developed by Dickens and Goette (2006) and rely on a large administrative matched employer-employee dataset for Belgium over the period 1990-2002. Firstly, our results indicate that DRWR is significantly higher for white-collar workers and lower for older workers and for workers with higher earnings and bonuses. Secondly, beyond labour force composition effects, sectoral differences in DRWR are related to competition, firm size, technology and wagebargaining institutions. We find that wages are more rigid in more competitive sectors, in labour-intensive sectors, and in sectors with predominant centralised wage setting at the sector level as opposed to firm-level wage agreements. -- Wage rigidity ; matched employer-employee data ; wage-bargaining institutions
Year of publication: |
2009
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Authors: | Du Caju, Philip ; Fuss, Catherine ; Wintr, Ladislav |
Publisher: |
Frankfurt am Main : European Central Bank |
Subject: | Lohnrigidität | Wage rigidity | Branche | Economic sector | Belgien | Belgium | 1990-2002 |
Saved in:
freely available
Extent: | Online-Ressource, (42 S., 1,13 MB) |
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Series: | Working paper series / European Central Bank. - Frankfurt, M. : European Central Bank, ISSN 1725-2806, ZDB-ID 2123559-4. - Vol. 1006 |
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature |
Language: | English |
Other identifiers: | hdl:10419/153440 [Handle] |
Classification: | J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10003831755