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The process of wage adjustment: An analysis using establishment-level data

Author

Listed:
  • Alberto Bayo-Moriones
  • Jose Enrique Galdon-Sanchez
  • Sara Martinez-de-Morentin

Abstract

This article uses data from Spanish manufacturing plants to analyze the determinants of the importance attributed to several criteria when wages are adjusted. More specifically, the criteria taken into account in the study are the cost of living, the wages of the firm in relation to its competitors, the fulfillment of collective agreements at sector level, the need to recruit and retain employees, the performance of the organization, and the industrial relations climate. The results show that the structural characteristics of the establishment, some human resource management practices, as well as the wage-setting arrangements and the influence of trade unions, play a role in explaining wage adjustments.

Suggested Citation

  • Alberto Bayo-Moriones & Jose Enrique Galdon-Sanchez & Sara Martinez-de-Morentin, 2016. "The process of wage adjustment: An analysis using establishment-level data," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 37(2), pages 245-268, May.
    • Handle: RePEc:sae:ecoind:v:37:y:2016:i:2:p:245-268
    DOI: 10.1177/0143831X14539022
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    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

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