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A Causality Study of the Relations between Wage and Employment in Specific OECD Countries

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  • Soon Beng Chew

    (Nanyang Business School, Nanyang Technological University, Singapore)

  • Chadwick Teo

    (Nanyang Business School, Nanyang Technological University, Singapore)

Abstract

We analyze the dynamic relationship between employment and wages for a number of OECD countries between the years 1969 to 1998. We propose factors that determine the type of industrial regime in a country. These include government policies, the goals of the labor unions and employers and institutional structures and practices. Looking into the future, with the advent of globalization, there should be a convergence toward employment-driven industrial relations regime as countries strive to keep labor cost competitive to ensure survival in international markets.

Suggested Citation

  • Soon Beng Chew & Chadwick Teo, 2001. "A Causality Study of the Relations between Wage and Employment in Specific OECD Countries," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 45-68.
    • Handle: RePEc:wsi:rpbfmp:v:04:y:2001:i:01:n:s0219091501000310
    DOI: 10.1142/S0219091501000310
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    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services
    • G3 - Financial Economics - - Corporate Finance and Governance

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