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How to explain Wage Growth Slowdown in Austria? A sectoral-panel analysis of collectively bargained minimum wages

Author

Listed:
  • Philipp Gerhartinger

    (Department for Economic, Welfare and Social Policy, Chamber of Labour, Linz, Austria)

  • Philipp Haunschmid

    (Department for Economic, Welfare and Social Policy, Chamber of Labour, Linz, Austria)

  • Dennis Tamesberger

    (Department for Economic, Welfare and Social Policy, Chamber of Labour, Linz, Austria)

Abstract

This paper studies the relationship between union power, unemployment and wages. We find many theoretically well-established links suggesting that unemployment negatively affects bargaining power. As an empirical strategy we use Austrian data from 1966 until 2015 on the development of collectively bargained minimum wages. Such data directly reflects the result of a bargaining process between unions and employer organizations, and enables to show the link between bargaining power and unemployment. Moreover, it allows for further discussion on the potential influence of other macroeconomic and institutional variables, such as trade openness and union density.

Suggested Citation

  • Philipp Gerhartinger & Philipp Haunschmid & Dennis Tamesberger, 2017. "How to explain Wage Growth Slowdown in Austria? A sectoral-panel analysis of collectively bargained minimum wages," ICAE Working Papers 58, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.
    • Handle: RePEc:ico:wpaper:58
    as

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    References listed on IDEAS

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