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Real Wage Determination and Rent-Sharing in Collective Bargaining Agreements

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Christofides, Louis N
Oswald, Andrew J

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Abstract

The microeconomic forces that influence real wages are not fully understood. This paper studies pay determination using data on approximately 600 labor contracts. It finds that the real wage is an increasing function of past profitability in the employer's industry and a decreasing function of the level of unemployment in the employer's region. These results are consistent with rent-sharing theories. Copyright 1992, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Publisher Info
Article provided by MIT Press in its journal Quarterly Journal of Economics.

Volume (Year): 107 (1992)
Issue (Month): 3 (August)
Pages: 985-1002
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Handle: RePEc:tpr:qjecon:v:107:y:1992:i:3:p:985-1002

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This page was last updated on 2009-11-16.

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