The Process of Wage Adjustment: An Analysis Using Establishment-Level Data

Alberto Bayo-Moriones, Jose Galdon-Sanchez () and Sara Martinez-de-Morentin ()
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Sara Martinez-de-Morentin: Universidad Pública de Navarra

No 5998, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This article presents a study of the influences on the factors that shape wage adjustments. The cost of living, comparability with other firms' wages, the fulfilment of collective agreements at sector level, the need to recruit and retain employees, the performance of the organisation, and the climate of industrial relations are included as factors of interest. The analysis was carried out using a sample of Spanish manufacturing plants. Our results show that the structural characteristics of the establishment such as its size or foreign ownership, as well as the wage setting arrangements and trade unions, play a role in explaining the importance of the factors mentioned in shaping wage adjustments. The human resource management policies adopted by the employer seem to be less relevant, although the qualification of workers and the use of pay for performance have a significant impact on the process of wage adjustment.

Keywords: pay settlements; collective bargaining; wage negotiation (search for similar items in EconPapers)
JEL-codes: J30 J40 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2011-09
New Economics Papers: this item is included in nep-hme, nep-lab and nep-lma
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Citations: View citations in EconPapers (1)

Forthcoming - published in: Economic and Industrial Democracy, 2016, 37(2), 245-268

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Working Paper: The Process of Wage Adjustment: An Analysis Using Establishment- Level Data (2013)
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