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Institutional determinants of public--private sector wages' linkages

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  • Ana Lamo
  • Javier J. Pérez
  • A. Jesús Sánchez-Fuentes

Abstract

We estimate the probability of public sector wage leadership -- defined as Granger causality from public to private sector wages -- in a pool of 15 Organization for Economic Cooperation and Development (OECD) countries as a function of countries' institutional features, and notably wage-setting institutions. Government's involvement in collective bargaining and collective bargaining centralization are positively correlated with the probability of finding public wage leadership. Among the factors that reduce its probability, we can underline the impact of globalization and the degree of unionization of the economy.

Suggested Citation

  • Ana Lamo & Javier J. Pérez & A. Jesús Sánchez-Fuentes, 2013. "Institutional determinants of public--private sector wages' linkages," Applied Economics Letters, Taylor & Francis Journals, vol. 20(12), pages 1165-1169, August.
  • Handle: RePEc:taf:apeclt:v:20:y:2013:i:12:p:1165-1169
    DOI: 10.1080/13504851.2013.797550
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    References listed on IDEAS

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    1. Philip Du Caju & Erwan Gautier & Daphne Momferatu & Melanie Ward-Warmedinger, 2009. "Institutional Features of Wage Bargaining in 23 European Countries, the US and Japan," Ekonomia, Cyprus Economic Society and University of Cyprus, vol. 12(2), pages 57-108, Winter.
    2. Afonso, António & Gomes, Pedro, 2014. "Interactions between private and public sector wages," Journal of Macroeconomics, Elsevier, vol. 39(PA), pages 97-112.
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    Cited by:

    1. Javier J. Perez & Ana Lamo & Enrique Moral-Benito, 2015. "Does Slack Influence Public and Private Labor Market," EcoMod2015 8792, EcoMod.

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