The diverse wage setting mechanisms prevailing in the different Uruguayan economic activities by 2004 are here summarised. The precise knowledge of these mechanisms is relevant in itself, but it is also a key element when chosing the adequate theoretical framework to perform applied research...

Most transition countries used tax-supported wage norms in the early 1990's, as a part of their market liberalization programs. This paper analyses how a firm-level tax (or subsidy) on deviations from a pre-set wage norm may promote employment by rotating the labor demand curve perceived by the...