How increased product market competition may be reshaping America's labor markets
In this article, John Duca discusses how and why compensation has become more market sensitive in the United States. Specifically, he illustrates how fiercer product market competition can theoretically reduce the prevalence of nominal wage contracts and of indexation in such contracts, while boosting the use of profit sharing. He also summarizes empirical findings supporting the view that increased competition has reduced the use of nominal contracts and the indexation of contract wages, and presents limited, inconclusive data supporting the view that greater product market competition has boosted the overall use of profit sharing. Consistent with aggregate movements in labor practices and a measure of the degree of goods market competition, industry-level data are presented that indicate these changes in labor practices are most evident in sectors that have experienced either deregulation or increased foreign competition since the late 1970s. While more research needs to be done, particularly using industry-level data, new theoretical arguments and empirical evidence support, but do not conclusively prove, the view that increased product market competition has been reshaping America's labor markets.
Volume (Year): (1998)
Issue (Month): Q IV ()
|Contact details of provider:|| Web page: http://www.dallasfed.org/|
More information through EDIRC
|Order Information:|| Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Holland, A Steven, 1986. "Wage Indexation and the Effect of Inflation Uncertainty on Employment:An Empirical Analysis," American Economic Review, American Economic Association, vol. 76(1), pages 235-243, March.
- Winston, Clifford, 1993. "Economic Deregulation: Days of Reckoning for Microeconomists," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1263-1289, September.
When requesting a correction, please mention this item's handle: RePEc:fip:fedder:y:1998:i:qiv:p:2-16. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Amy Chapman)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.