Sectoral differences in downward real wage rigidity: workforce composition, institutions, technology and competition
Abstract"This paper examines whether differences in wage rigidity across sectors can be explained by differences in workforce composition, wage-bargaining institutions, technology and competition. We rely on a large administrative matched employer-employee dataset for Belgium over the period 1990 - 2002. Our results indicate that downward real wage rigidity is significantly higher for white-collar workers, lower for older workers and decreases with the level of earnings and bonuses. Beyond labour force composition effects, we find that wages are more rigid in sectors with predominant centralised wage-setting at the sector level as opposed to firm-level agreements. Also, more labour-intensive sectors and competitive sectors have more rigid wages." (Author's abstract, IAB-Doku) ((en))
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Bibliographic InfoArticle provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its journal Zeitschrift für ArbeitsmarktForschung – Journal for Labour Market Research.
Volume (Year): 45 (2012)
Issue (Month): 1 ()
Other versions of this item:
- P. Du Caju & C. Fuss & L. Wintr, 2012. "Sectoral differences in downward real wage rigidity: workforce composition, institutions, technology and competition," Journal of Labour Market Research, Springer, vol. 45(1), pages 7-22, March.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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- Julián Messina & Philip Du Caju & Cláudia Filipa Duarte & Niels Lynggård Hansen & Mario Izquierdo, 2010.
"The incidence of nominal and real wage rigidity : An individual-based sectoral approach,"
Working Paper Research
191, National Bank of Belgium.
- Julián Messina & Cláudia Filipa Duarte & Mario Izquierdo & Philip Du Caju & Niels Lynggård Hansen, 2010. "The Incidence of Nominal and Real Wage Rigidity: An Individual-Based Sectoral Approach," Journal of the European Economic Association, MIT Press, vol. 8(2-3), pages 487-496, 04-05.
- Messina, Julián & Du Caju, Philip & Izquierdo, Mario & Duarte, Cláudia Filipa & Hansen, Niels Lynggård, 2010. "The incidence of nominal and real wage rigidity: an individual-based sectoral approach," Working Paper Series 1213, European Central Bank.
- Julián Messina & Philip Du Caju & Cláudia Filipa Duarte & Niels Lynggård Hansen & Mario Izquierdo, 2010. "The incidence of nominal and real wage rigidity: an individual-based sectoral approach," Banco de Espaï¿½a Working Papers 1022, Banco de Espa�a.
- Du Caju, Philip & Kosma, Theodora & Lawless, Martina & Messina, Julián & Rõõm, Tairi, 2013.
"Why Firms Avoid Cutting Wages: Survey Evidence from European Firms,"
Research Technical Papers
03/RT/13, Central Bank of Ireland.
- Philip Du Caju & Theodora Kosma & Martina Lawless & Tairi Rõõm, 2013. "Why firms avoid cutting wages: survey evidence from European firms," Bank of Estonia Working Papers wp2013-2, Bank of Estonia, revised 24 May 2013.
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