This paper provides an empirical analysis on the determination of wages at the sectoral level in main industrial … economies. Nominal wages are bargained between labour unions and employers in imperfect competitive markets, where spillovers … for services sectors. It reflects national inflation and productivity growth, while labour market tightness is negligible …

more need for layoffs and labour flexibility have lower wages in countries where stricter EPL protects workers from layoffs …-2005, particularly for wages of unskilled workers. However, we also find that where workers are well organised, they can take advantage … of EPL to secure higher wages. …

produce in practice. The paper identifies four main regulatory forces that shape the quantum and basis of the wages and non …