The influence of labour flows on wage drift: an empirical analysis for The Netherlands

Butter, F.A.G. den; Eppink, Florian V.

doi:10.1080/1350485022000041069

Cited by 5 publications

(4 citation statements)

References 9 publications

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“…Their paper provides, therefore, an alternative explanation for the wage cushion, which is expected to be particularly relevant in countries where centralised negotiations are not typically followed by local collective bargaining. 3 A common feature of this line of work is the use of a representative …rm framework.…”

Section: Introductionmentioning

confidence: 99%

“…3 The only qualitative di¤erence is that the e¤ect of heterogeneity on the wage cushion is not statistically signi…cant in the …xed e¤ects model.…”

mentioning

confidence: 97%

“…Holden (1988),Hibbs and Locking (1996) andOrdine (1996) provide related contributions 3. A limiting feature of their model, however, is that the central wage ‡oor is exogenous throughout the analysis 4.…”

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confidence: 99%

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Firm Heterogeneity and Wages in Unionised Labour Markets: Theory and Evidence

Bastos¹,

Monteiro

Straume

2009

SSRN Journal

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In many countries wages are set in two stages, where industry-level collective bargaining is followed by …rm-speci…c arrangements determining actual paid wages as a markup on the industry wage ‡oor. What explains the wage set in each of these stages? In this paper we show that both the industry wage ‡oor and the average wage cushion are systematically associated with the degree of …rm heterogeneity in the industry: The former (latter) is negatively (positively) associated with the productivity spread. Furthermore, since the response of the wage ‡oor dominates that of the wage cushion, workers in more heterogeneous industries tend to get lower actual paid wages. These conclusions are reached in a model of Cournot oligopoly with …rm productivity heterogeneity and a two-tiered wage setting system. They are then con…rmed by administrative data covering virtually all workers, …rms and collective bargaining agreements of the Portuguese private sector for the period 1991-2000.

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Section: Introductionmentioning

confidence: 99%

“…3 The only qualitative di¤erence is that the e¤ect of heterogeneity on the wage cushion is not statistically signi…cant in the …xed e¤ects model.…”

mentioning

confidence: 97%

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Firm Heterogeneity and Wages in Unionised Labour Markets: Theory and Evidence

Bastos¹,

Monteiro

Straume

2009

SSRN Journal

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“…1 1 Recent contributions include Edin, Holmlund and Östras (1994), Manning (1994), Wagner (1994), Bratsberg and Turunen (1996), Winter‐Ebmer (1996), Partridge and Rickman (1997), Wulfsberg (1997), Janssens and Konings (1998), Pannenberg and Schwarze (1998), Turunen (1998), Dyrstad and Johansen (2000), Kennedy and Borland (2000), Raaum and Wulfsberg (2000) and Bell, Nickell and Quintini (2002). In a series of papers, Frank den Butter and colleagues have examined the relationship between aggregate labour market flows and aggregate wages in the Netherlands (Broersma and den Butter, 2001, 2002; den Butter and Eppink, 2003). We are not aware of any studies of regional wages using regional flow variables. …”

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confidence: 99%

Wage Formation, Regional Migration and Local Labour Market Tightness*

Carlsen¹,

Johansen²,

Røed³

2006

Oxf Bull Econ Stat

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Economic theory predicts that local labour market tightness affects local wage setting as well as individuals' migration decisions. But how should we measure local labour market tightness? In this paper we show that the common practice of using the local rate of unemployment as the tightness indicator may be misplaced. Instead, we propose a human capital adjusted outflow rate from unemployment that can be computed on the basis of micro register data. This outflow rate performs better than traditional measures of regional labour market conditions in panel data analyses of regional wages and interregional migration. JEL classification: J31, J61Keywords: Regional wages; interregional migration; labour market tightness * We wish to thank seminar participants in Bergen and Trondheim, in particular Espen Bratberg, Eilev S. Jansen and Jan F. Kiviet for comments, and the Norwegian Ministry of Finance and the Norwegian Directorate of Labour for financial support. The usual disclaimer applies.

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Firm heterogeneity and wages in unionised labour markets: Theory and evidence

Bastos¹,

Monteiro²,

Straume³

2009

Labour Economics

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In many countries wages are set in two stages, where industry-level collective bargaining is followed by firmspecific arrangements determining actual paid wages as a mark-up on the industry wage floor. What explains the wage set in each of these stages? In this paper we show that both the industry wage floor and the average wage cushion are systematically associated with the degree of firm heterogeneity in the industry: The former (latter) is negatively (positively) associated with the productivity spread. Furthermore, since the response of the wage floor dominates that of the wage cushion, workers in more heterogeneous industries tend to get lower actual paid wages. These conclusions are reached in a model of Cournot oligopoly with firm productivity heterogeneity and a two-tiered wage setting system. They are then confirmed by administrative data covering virtually all workers, firms and collective bargaining agreements of the Portuguese private sector for the period 1991-2000.

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The influence of labour flows on wage drift: an empirical analysis for The Netherlands

Cited by 5 publications

References 9 publications

Firm Heterogeneity and Wages in Unionised Labour Markets: Theory and Evidence

Firm Heterogeneity and Wages in Unionised Labour Markets: Theory and Evidence

Wage Formation, Regional Migration and Local Labour Market Tightness*

Firm heterogeneity and wages in unionised labour markets: Theory and evidence

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