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Wage‐fixing Behaviour of Managers in Australia

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  • Judith Rich
  • Julian Teicher

Abstract

Researchers have conducted surveys of firms in an attempt to test various theories of wage rigidity. The survey of Australian firms reported in this paper found strong support for the view that hiring and training costs are important reasons why employers do not reduce wages, consistent with the surveys of Blinder and Choi (1990), Bewley (1995, 1999) and Kaufman (1984). All the surveys find pervasive support for the notion of fairness as an explanation for wage rigidity. Qualified support was found for the idea that fear of unemployment motivates worker effort.

Suggested Citation

  • Judith Rich & Julian Teicher, 2002. "Wage‐fixing Behaviour of Managers in Australia," British Journal of Industrial Relations, London School of Economics, vol. 40(2), pages 177-195, June.
    • Handle: RePEc:bla:brjirl:v:40:y:2002:i:2:p:177-195
    DOI: 10.1111/1467-8543.00228
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    Cited by:

    1. Dennis A.V. Dittrich, 2004. "Wages, Length of Relationship and Bargaining Power: An experimental study in a world of complete contracts," Papers on Strategic Interaction 2004-18, Max Planck Institute of Economics, Strategic Interaction Group.

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