The standard of living of blue-collar workers in manufacturing rose by 2.2 percent per year over the period 1970 to 2000. At the same time the number of working hours was reduced by close to 15 percent. The real income gains are illustrated by a few examples: how many hours does a worker in...

During the boom years of the 1960s and 1970s wage drift (the difference between growth rates of wages and salaries actually paid and wage increases as negotiated by unions in collective bargaining) was strongly positive in Austria's manufacturing industry. This trend was reversed during the...

According to the concept of the productivity-oriented wage policy, increases in wages should be guided by the development in labour productivity. This would leave unit labour costs unchanged. This applies, however, only to economies which are in equilibrium; it is not valid for disequilibrium...

The construction industry is generally thought of as a sector which is sheltered from foreign competition. In a comparison with the manufacturing sector, a typical open sector, wages in the construction industry nonetheless turn out to be highly flexible. During the last 15 years increases in...

Two consumer price indices are computed in Austria: the national Consumer Price Index and the Harmonised Consumer Price Index, which is comparable to those of other EU countries. Both indices differ with regard to the weighting scheme, the product coverage as well as to the formula employed at...

Austria's accession to the EU has intensified competitive pressure at all levels of production and distribution. Where price reductions are based on cost reductions considerable lags must be expected. One important exception are foods prices. At the beginning of 1995 Austria adopted the EU's...

Wage differentials in Austria's manufacturing sector exhibit wide fluctuations. The main determinants are the state of the labour market and the number of foreign workers in Austria. A decrease in unemployment reduces wage differentials, an increase in the number of foreign workers widens the...