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What Are the Factors Behind Pay Settlements? Evidence from Spanish and British Data

  • Bayo-Moriones, Alberto

    ()

    (University of Navarra)

  • Galdon-Sanchez, Jose Enrique

    ()

    (Universidad Pública de Navarra)

  • Martinez-de-Morentin, Sara

    ()

    (Universidad Pública de Navarra)

This article presents a study of the determinants of pay settlements in a sample of Spanish and British establishments. We find that variables such as establishment size and age, foreign ownership, labour costs, the existence of internal labour markets, a strategic approach to human resource management and pay setting institutions are related to the factors that shape pay adjustments. Moreover, our findings show that there are significant differences in the determinants of pay settlements between Spain and Great Britain. We suggest that the labour market institutions developed in each country influence pay setting decisions.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3401.

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Length: 38 pages
Date of creation: Mar 2008
Date of revision:
Publication status: published as 'The Determinants of Pay Settlements. The Influence of the National Context' in: The International Journal of Human Resource Management, 2013, 24 (3), 579-600
Handle: RePEc:iza:izadps:dp3401
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  1. Christoph Schmidt & Klaus Zimmerman, 1990. "Work Characteristics, Firm Size and Wages," Working Papers 644, Princeton University, Department of Economics, Industrial Relations Section..
  2. Kerstin Hamann & John Kelly, 2003. "The Domestic Sources of Differences in Labour Market Policies," British Journal of Industrial Relations, London School of Economics, vol. 41(4), pages 639-663, December.
  3. Robert E. Hall, 1980. "The Importance of Lifetime Jobs in the U.S. Economy," NBER Working Papers 0560, National Bureau of Economic Research, Inc.
  4. Arai, Mahmood, 1999. "Wages, Profits and Capital Intensity: Evidence from Matched Worker-Firm Data," Research Papers in Economics 1999:3, Stockholm University, Department of Economics.
  5. Plasman, Robert & Rusinek, Michael & Rycx, Francois, 2006. "Wages and the Bargaining Regime under Multi-level Bargaining: Belgium, Denmark and Spain," IZA Discussion Papers 1990, Institute for the Study of Labor (IZA).
  6. Donna Brown & Peter Ingram & Jonathan Wadsworth, 2004. "The Price is Right? Pay Settlements and Nominal Wage Rigidity in Britain," British Journal of Industrial Relations, London School of Economics, vol. 42(3), pages 507-525, 09.
  7. Jane Morton & W. S. Siebert, 2001. "Labour Market Regimes and Worker Recruitment and Retention in the European Union: Plant Comparisons," British Journal of Industrial Relations, London School of Economics, vol. 39(4), pages 505-528, December.
  8. Cardoso, Ana Rute & Portugal, Pedro, 2004. "Bargained Wages, Wage Drift and the Design of the Wage-Setting System," CEPR Discussion Papers 4405, C.E.P.R. Discussion Papers.
  9. Clive Belfield & Xiangdong Wei, 2004. "Employer size-wage effects: evidence from matched employer-employee survey data in the UK," Applied Economics, Taylor & Francis Journals, vol. 36(3), pages 185-193.
  10. repec:nsr:niesrd:285 is not listed on IDEAS
  11. Charles Brown & James L. Medoff, 2003. "Firm Age and Wages," Journal of Labor Economics, University of Chicago Press, vol. 21(3), pages 677-698, July.
  12. Oi, Walter Y. & Idson, Todd L., 1999. "Firm size and wages," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 33, pages 2165-2214 Elsevier.
  13. Thierry Lallemand & Robert Plasman & François Rycx, 2005. "Why do large firms pay higher wages? evidence from matched worker-firm data," ULB Institutional Repository 2013/8743, ULB -- Universite Libre de Bruxelles.
  14. Juan Francisco Canal Domínguez & César Rodríguez Gutiérrez, 2004. "Collective Bargaining and Within-firm Wage Dispersion in Spain," British Journal of Industrial Relations, London School of Economics, vol. 42(3), pages 481-506, 09.
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