The Link Between Wages and Productivity in Spain
AbstractThis paper examines the effect of productivity on wages for Spanish industrial sectors by developing a model that captures effects from both sector-specific and aggregate variables. The results show that a dual behaviour can be inferred, at the sector level, in the wage-setting mechanism. It is also found that the linkage between wages and productivity varies over time. Some explanations for the increase in wage dispersion are provided, focusing on the increasing decentralisation in wage bargaining after 1986. Finally, we cast some light on the theoretical structure underlying the labour market.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal International Review of Applied Economics.
Volume (Year): 21 (2007)
Issue (Month): 2 ()
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- Roberto Bande & Melchor Fernandez & Victor Montuenga, 2005.
"Regional Unemployment in Spain: Disparities, Business Cycle and Wage Setting,"
Documentos de trabajo - Analise Economica
0035, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
- Bande, Roberto & Fernández, Melchor & Montuenga, Víctor, 2008. "Regional unemployment in Spain: Disparities, business cycle and wage setting," Labour Economics, Elsevier, vol. 15(5), pages 885-914, October.
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- Tang, Chor Foon, 2010. "A note on the nonlinear wages-productivity nexus for Malaysia," MPRA Paper 24355, University Library of Munich, Germany.
- Chor Foon Tang, 2012. "The non-monotonic effect of real wages on labour productivity: New evidence from the manufacturing sector in Malaysia," International Journal of Social Economics, Emerald Group Publishing, vol. 39(6), pages 391-399, May.
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