Sectoral differences in downward real wage rigidity: workforce composition, institutions, technology and competition

Branchenspezifische Unterschiede in der Abwärtsreallohnstarrheit: Arbeitskraftstruktur, Institutionen, Technologie und Wettbewerb

Philip Du Caju, Catherine Fuss and L. Wintr ()
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L. Wintr: Central Bank of Luxembourg

Journal for Labour Market Research, 2012, vol. 45, issue 1, 7-22

Abstract: Abstract This paper examines whether differences in wage rigidity across sectors can be explained by differences in workforce composition, wage-bargaining institutions, technology and competition. We rely on a large administrative matched employer-employee dataset for Belgium over the period 1990–2002. Our results indicate that downward real wage rigidity is significantly higher for white-collar workers, lower for older workers and decreases with the level of earnings and bonuses. Beyond labour force composition effects, we find that wages are more rigid in sectors with predominant centralised wage-setting at the sector level as opposed to firm-level agreements. Also, more labour-intensive sectors and competitive sectors have more rigid wages.

Keywords: Wage rigidity; Matched employer-employee data; Wage-bargaining institutions; Downward real wage rigidity (search for similar items in EconPapers)
JEL-codes: J31 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (7)

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Journal Article: Sectoral differences in downward real wage rigidity: workforce composition, institutions, technology and competition (2012)
Journal Article: Sectoral differences in downward real wage rigidity: workforce composition, institutions, technology and competition (2012)
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DOI: 10.1007/s12651-012-0100-3

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