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Wages, Unions, Insiders and Product Market Power

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Author Info

  • Nickell, S.
  • Vainiomaki, J.
  • Wadhwani, S.

Abstract

This paper analyses time series data on some 800 British manufacturing companies to address various questions concerning the role of insiders and market power in wage determination. The following are the important results. First, firm specific factors such as productivity gains do influence wage increases. Second, there is no robust evidence of insider power at wok in wage setting. Third, conditions in the external labour market are a very important influence on company wages, although less so for firms with a high degree of market power. Finally, product market power itself has a positive impact on wages, which is enhanced in large firms but is not influenced by union status.

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Bibliographic Info

Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 99131.

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Length: 32 pages
Date of creation: 1991
Date of revision:
Handle: RePEc:oxf:wpaper:99131

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Keywords: wages ; trade unions ; manufacturing industries ; production;

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Cited by:
  1. Wolfgang Ochel, 2001. "Geht der Einfluss der Gewerkschaften auf die Lohnbildung international zurück?," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 54(05), pages 44-46, October.
  2. Destefanis, Sergio & Mastromatteo, Giuseppe, 2010. "Wage Inequality and Labour-market Performance. A Role for Corporate Social Responsibility - Disuguaglianza salariale e performance del mercato del lavoro," Economia Internazionale / International Economics, Camera di Commercio di Genova, vol. 63(1), pages 91-120.
  3. Stephen Nickell & D. Nicolitsas, 1994. "Wages," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 51644, London School of Economics and Political Science, LSE Library.
  4. Stephen Nickell & D. Nicolitsas, 1994. "Wages, effort and productivity," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 20794, London School of Economics and Political Science, LSE Library.

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