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Pattern Bargaining and Wage Leadership in Austria

  • Wolfgang Pollan

    (WIFO)

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    Several contributions to the economic literature on industrial relations claim that wage bargaining in Austria is characterised by pattern bargaining or wage leadership: A certain bargaining unit, such as the metal workers, sets the going rate for the rest of the economy. If the wage leader takes the macroeconomic effects of high wage settlements into account, the outcome, namely wage moderation and small wage disparity, may be much the same as in a centralised procedure, where the peak union and employer organisations control wage bargaining.

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    Article provided by WIFO in its journal WIFO-Monatsberichte.

    Volume (Year): 77 (2004)
    Issue (Month): 3 (March)
    Pages: 197-211

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    Handle: RePEc:wfo:monber:y:2004:i:3:p:197-211
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    1. Richard B. Freeman & Lawrence F. Katz, 1995. "Differences and Changes in Wage Structures," NBER Books, National Bureau of Economic Research, Inc, number free95-1.
    2. Harry C. Katz, 1993. "The decentralization of collective bargaining: A literature review and comparative analysis," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(1), pages 3-22, October.
    3. Lars Calmfors, 1993. "Centralisation of Wage Bargaining and Macroeconomic Performance: A Survey," OECD Economics Department Working Papers 131, OECD Publishing.
    4. Soskice, David, 1990. "Wage Determination: The Changing Role of Institutions in Advanced Industrialized Countries," Oxford Review of Economic Policy, Oxford University Press, vol. 6(4), pages 36-61, Winter.
    5. Richard B. Freeman & Robert S. Gibbons, 1995. "Getting Together and Breaking Apart: The Decline of Centralized Collective Bargaining," NBER Chapters, in: Differences and Changes in Wage Structures, pages 345-370 National Bureau of Economic Research, Inc.
    6. Wiji Arulampalam & Alison L. Booth & Mark L. Bryan, 2004. "Training in Europe," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 346-360, 04/05.
    7. Freeman, Richard B., 1998. "War of the models: Which labour market institutions for the 21st century?1," Labour Economics, Elsevier, vol. 5(1), pages 1-24, March.
    8. Eichengreen, Barry & Iversen, Torben, 1999. "Institutions and Economic Performance: Evidence from the Labour Market," Oxford Review of Economic Policy, Oxford University Press, vol. 15(4), pages 121-38, Winter.
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