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Bhuller, Manudeep, Karl Ove Moene, Magne Mogstad, and Ola L. Vestad. "Facts and Fantasies about Wage Setting and Collective Bargaining." Journal of Economic Perspectives 36, no. 4 (November 1, 2022): 29–52. http://dx.doi.org/10.1257/jep.36.4.29.
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In this article, we document and discuss salient features of collective bargaining systems in the OECD countries, with the goal of debunking some misconceptions and myths and revitalizing the general interest in wage setting and collective bargaining. We hope that such an interest may help close the gap between how economists tend to model wage setting and how wages are actually set. Canonical models of competitive labor markets, monopsony, and search and matching all assume a decentralized wage setting where individual firms and workers determine wages. In most advanced economies, however, it is common that firms or employer associations bargain with unions over wages, producing collective bargaining systems. We show that the characteristics of these systems vary in important ways across advanced economies, with regards to both the scope and the structure of collective bargaining.
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Goerke, Laszlo. "TAXES ON PAYROLL, REVENUES AND PROFITS IN THREE MODELS OF COLLECTIVE BARGAINING." Scottish Journal of Political Economy 43, no. 5 (November 1996): 549–65. http://dx.doi.org/10.1111/j.1467-9485.1996.tb00950.x.
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Bruyneel, Sabrina, Laurens Cherchye, and Bram De Rock. "Collective consumption models with restricted bargaining weights: an empirical assessment based on experimental data." Review of Economics of the Household 10, no. 3 (May 25, 2011): 395–421. http://dx.doi.org/10.1007/s11150-011-9125-6.
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Donegani, Chiara Paola, and Stephen McKay. "Is there a paradox of lower job satisfaction among trade union members? European evidence." Transfer: European Review of Labour and Research 18, no. 4 (October 26, 2012): 471–89. http://dx.doi.org/10.1177/1024258912459312.
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In most of the literature on industrial relations, union members are found to be less satisfied with their jobs than non-members. Analysts have applied various statistical and econometric approaches to try to resolve what seems like a paradoxical finding, with mixed results, using theories based on selection bias and ‘exit-voice’ considerations. We review this literature, and note that most empirical studies are from only a few countries – especially the US and the UK. Analysis of a wider range of 18 countries participating in the large-scale European Social Survey in both 2006 and 2010 finds that trade union members generally tend to express higher rather than lower job satisfaction than others, although results differ by country. We use regression models (ordinal logistic) to show that union membership is generally associated with higher job satisfaction, even after controlling for individual, job and workplace differences. Attempts to link the union factor in job satisfaction to typologies of countries, either by welfare regime or extent of collective bargaining coverage, have not been able to address the puzzle of why a negative link persists in a few countries, but not in most.
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Sahnoun, Marwa, and Chokri Abdennadher. "Labor Market Institutions and Performance Economic Within Trial Labor Market Models: Flexibility, Rigidity, and Flexicurity." Review of Black Political Economy 46, no. 2 (May 28, 2019): 99–129. http://dx.doi.org/10.1177/0034644619850179.
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The purpose of this article is to identify economic performance through three labor market models (flexibility, rigidity, and flexicurity) that result from the effect of the labor market regulation. After conducting a comparative analysis of the flexibility, rigidity, and flexicurity models of the labor market using a feasible generalized least squares (FGLS) applied to 18 organisation for economic co-operation and development (OECD) countries for the period between 2005 and 2013, we reached the following results. First, the effect of the labor market regulation on the unemployment rate appears to be particularly important for demographic groups (women and young people) on the flexible labor market. The union density and bargaining coverage seem to have the best results in the unemployment rate on the flexible market. More coordinated collective bargaining appears to reduce unemployment on the rigid labor market compared with the flexible one. However, our results are opposed to the neoclassical assertions which suggest that women are excluded from the permanent employment when a strict employment protection legislation (EPL) is excised. We also show that the replacement rate, the duration of unemployment benefits, the active labor market policies, permanent immigration inflows, and the tax wedge seem to have the best results on the flexible labor market, while the other variables have mixed effects on the different models of the labor market. These findings can provide policy makers and regulators with a better understanding of the performance of the flexible labor market and its behavior in the face of labor market institutions and adverse economic shocks. In fact, the government should liberalize strict labor laws.
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Ramesh Kurpad, Meenakshi. "Made in Bangladesh: challenges to the ready-made garment industry." Journal of International Trade Law and Policy 13, no. 1 (March 11, 2014): 80–96. http://dx.doi.org/10.1108/jitlp-06-2013-0019.
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Purpose – The primary aim of this paper is to evaluate the challenges before the growth of the ready-made garment (RMG) industry in Bangladesh, the economy's backbone, and suggest appropriate reform. Design/methodology/approach – The paper begins by tracing the growth and evolution of the RMG industry before identifying the challenges. It then proceeds to suggest appropriate reform for the same. Findings – The paper argues for more effective models of collective bargaining and unionism as a solution to the problems that the industry faces. Originality/value – The paper is the first of its kind in the sense that it is a comprehensive account of the challenges to the RMG industry in Bangladesh.
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Hameed, Syed M. A. "A Theory of Collective Bargaining." Relations industrielles 25, no. 3 (April 12, 2005): 531–51. http://dx.doi.org/10.7202/028153ar.
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The author brings out the inadequacies of the present theoretical models in explaining collective bargaining and provides the constructs of a more complete and integrated body of theory. He also notes the importance of using functional terms in a theoretical model of this kind.
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Babalola, Sunday Samson, and Ajibola Abdulrahamon Ishola. "Perception of collective bargaining and satisfaction with collective bargaining on employees’ job performance." Corporate Ownership and Control 14, no. 2 (2017): 296–301. http://dx.doi.org/10.22495/cocv14i2c2p3.
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This study explores the influence of collective bargaining and satisfaction with bargaining on employees’ job performance. A structured questionnaire was distributed to selected sample of 181 unionized employees in the public sector organizations. The results revealed two models, with the first model indicating that satisfaction with collective bargaining (β = .56, p < 0.01) was a significant direct predictor of job performance among employees. The second model showed 35% incremental change in employees’ job performance. This indicated that age (β = .27, p < .01), and educational qualification (β = .58, p < .01) were significant independent predictors of employees job performance. This study showed that collective bargaining process is very critical in determining organizational industrial relations which in turn help to improve job related outcome such as employees’ job performance
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Moore, Sian, Ozlem Onaran, Alexander Guschanski, Bethania Antunes, and Graham Symon. "The resilience of collective bargaining – a renewed logic for joint regulation?" Employee Relations: The International Journal 41, no. 2 (February 11, 2019): 279–95. http://dx.doi.org/10.1108/er-09-2018-0256.
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PurposeThe purpose of this paper is twofold: first, to reassert the persistent association of the decline in collective bargaining with the increase in income inequality, the fall in the share of wages in national income and deterioration in macroeconomic performance in the UK; and second, to present case studies affirming concrete outcomes of organisational collective bargaining for workers, in terms of pay, job quality, working hours and work-life balance.Design/methodology/approachThe paper is based upon two methodological approaches. First, econometric analyses using industry-level and firm-level data for advanced and emerging economies testing the relationship between declining union density, collective bargaining coverage and the fall in the share of wages in national income. Second, it reports on ten in-depth case studies of collective bargaining each based upon analysis of collective bargaining agreements plus in-depth interviews with the actors party to them: in total, 16 trade union officers, 16 members and 11 employer representatives.FindingsThere is robust evidence of the effects of different measures of bargaining power on the labour share including union density, welfare state retrenchment, minimum wages and female employment. The case studies appear to address a legacy of deregulated industrial relations. A number demonstrate the reinvigoration of collective bargaining at the organisational and sectoral level, addressing the two-tier workforce and contractual differentiation, alongside the consequences of government pay policies for equality.Research limitations/implicationsThe case studies represent a purposive sample and therefore findings are not generalisable; researchers are encouraged to test the suggested propositions further.Practical implicationsThe paper proposes that tackling income inequality requires a restructuring of the institutional framework in which bargaining takes place and a level playing field where the bargaining power of labour is more in balance with that of capital. Collective bargaining addresses a number of the issues raised by the Taylor Review of Modern Working Practices as essential for “good work”, yet is at odds with the review’s assumptions and remedies. The case studies reiterate the importance of the development of strong workplace representation and bargaining at workplace level, which advocates for non-members and provides a basis for union recruitment, organisation and wider employee engagement.Originality/valueThe paper indicates that there may be limits to employer commitment to deregulated employment relations. The emergence of new or reinvigorated collective agreements may represent a concession by employers that a “free”, individualised, deinstitutionalised, precarious approach to industrial relations, based on wage suppression and work intensification, is not in their interests in the long run.
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Brunner, Eric J., and Andrew Ju. "State Collective Bargaining Laws and Public-Sector Pay." ILR Review 72, no. 2 (October 16, 2018): 480–508. http://dx.doi.org/10.1177/0019793918808727.
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Using the Public Use Microdata Sample from the 2005 to 2015 American Community Survey, the authors provide new evidence on how state collective bargaining laws affect public-sector wages. To isolate the causal effect of bargaining laws on public-sector pay, they examine wage differentials between otherwise similar public- and private-sector employees located in the same local labor market. They estimate difference-in-differences (DD) models that exploit two sources of plausibly exogenous variation: 1) policy discontinuities along state borders and 2) variation within states in collective bargaining laws in states where the majority of public workers are without collective bargaining rights. Findings show that mandatory collective bargaining laws increase public-sector wages by approximately 5 to 8 percentage points. Results therefore suggest that mandatory collective bargaining laws provide a formal mechanism through which public-sector workers are able to bargain for increased compensation.
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Pérez del Prado, Daniel. "Last trends on collective bargaining decentralization." LABOS Revista de Derecho del Trabajo y Protección Social 2, no. 3 (November 24, 2021): 149–69. http://dx.doi.org/10.20318/labos.2021.6492.
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Decentralisation of collective bargaining has been one of the key trends concerning labour market regulation of the last decades. Most of European countries have developed – with different breath and scope – procedures and reforms to strengthen the company level of bargaining. The Great Recession has stressed this orientation, particularly in those countries which were under financial pressure. This paper focuses on the cases of four Mediterranean countries – France, Italy, Spain, and Portugal – in order to assess how decentralisation has been carried out and, most importantly, what kind of practical results have been achieved. On the base of these outcomes, it highlights how the debate concerning the structure ofcollective bargaining is changing from a black or white perspective to a new one in which mixed models are possible if the whole system is coordinated, taking into consideration the type of collective bargaining model set in the country.
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Wetzel, Kurt, and Daniel G. Gallagher. "The Saskatchwan Government’s Internal Arrangements to Accomodate Collective Bargaining." Relations industrielles 34, no. 3 (April 12, 2005): 452–70. http://dx.doi.org/10.7202/028986ar.
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This study looks at three models employee! by Saskatchewan's provincial public sector management to facilitate bargaining. First is a relatively conventional adaptation to bargaining with provincial civil servants. In the second, associations of nursing homes and hospitals bargain in the presence of a government observer. The third has the government and school trustees, with government holding the balance of power, negotiating jointly with the teachers. The paper also discusses the central coordination and control functions which the government has developed to deal with bargaining.
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Baccaro, Lucio, and Marco Simoni. "Organizational Determinants of Wage Moderation." World Politics 62, no. 4 (October 2010): 594–635. http://dx.doi.org/10.1017/s0043887110000201.
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This article contributes to the political economic literature regarding the effects of industrial relations institutions on national economic outcomes. Based on an econometric analysis of the determinants of wage moderation in sixteen industrialized countries between 1974 and 2000, it argues that the organizational characteristics of trade unions have a significant impact on wage dynamics. Controlling for a number of institutional and economic factors, the countries in which trade union confederations directly involve workers in the process of collective bargaining ratification have on average lower wage growth relative to productivity than others. The authors also find that collective bargaining coordination and contract ratification magnify each other's wage-dampening effect. Through case studies of Ireland and Italy, the article examines the causal mechanisms underlying the uncovered statistical regularities and concludes that, particularly at a time in which classic political exchange is waning, worker involvement in contract ratification allows confederation leaders to resolve conflicting claims inside their organizations at lower wage levels than are achieved by a less participatory governance process.
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de le Court, Alexandre. "Stabilising Collective Agreements in Continental Europe: How Contract Law Principles Reinforce the Right to Collective Bargaining." Oñati Socio-legal Series 9, no. 1 (April 1, 2019): 51–69. http://dx.doi.org/10.35295/osls.iisl/0000-0000-0000-1012.
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Most continental European legal systems where normative value is conferred on collective bargaining agreements also include a legal mechanism, known as after-effects, whereby the content of such agreements survives after they expire. After-effects can be regulated by specific legislative provisions. Where such provisions are absent, jurisprudential constructions based on the application of general principles of contract law have been applied instead. This comparative study reveals an important convergence between these models, in terms of both the legal techniques adopted and in the objectives pursued. The study also reveals that states share common concerns around maintaining a certain balance between negotiating parties, whether through consolidating the respective models of collective bargaining or via correcting dysfunctions introduced by emergency measures. Those solutions can be embedded in the international definition of the right to collective bargaining, revealing the importance of a holistic vision on regulations underpinning the European collective bargaining model. La mayor parte de los ordenamientos jurídicos de Europa que confieren valor normativo a los convenios colectivos incluyen un sistema de supervivencia del contenido de éstos cuando expiran (ultraactividad). En algunos casos, está regulado por disposiciones legislativas específicas; en otros, por construcciones jurisprudenciales. El estudio comparativo muestra una convergencia importante entre los modelos, revelando preocupaciones comunes en el mantenimiento de un cierto equilibrio entre los interlocutores de la negociación colectiva, sea mediante la consolidación de los modelos existentes o mediante la corrección de disfunciones provocadas por medidas de emergencia. Estas soluciones se integran en la definición internacional del derecho a la negociación colectiva, lo que revela la importancia de una visión holística de la regulación que sustenta el modelo de negociación colectiva europea.
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Baloch, Qadar Bakhsh, Sheikh Raheel Manzoor, and Abdul Qayum. "Factors Affecting Employer-Employee Relationship in Police Sector of Pakistan: The Mediating Role of Working Condition." Peshawar Journal of Psychology and Behavioral Sciences (PJPBS) 2, no. 2 (January 5, 2017): 215–34. http://dx.doi.org/10.32879/pjpbs.2016.2.2.215-234.
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The study examines the factors i.e. (collective bargaining, recruitment, remuneration, communication) affecting employer- employee relationship with inclusion of mediator i.e. workplace condition. Primary data was collected from police departments working in four provinces of Pakistan namely, Khyber Pakhtunkhwa, Sindh, Punjab and Baluchistan. Questionnaires were administered among the three tiers of leadership i.e. top, middle and the bottom. For validation of data collection instrument the confirmatory factor analysis via structure equation model was conducted and all the models were found with significant loadings. Liseral and SPSS software were used for data analyses. For measuring direct and mediating effect study used hierarchal linear regression model. The findings of the study indicate that collective bargaining, recruitment, communication and remuneration have significant positive effect on employer-employee relationship whereas, workplace condition partially mediates the relationship amid factor affecting employee relation i.e. (collective bargaining, recruitment, communication and remuneration) and employer- employee relationship. Moreover, study reveals that inclusion of collective bargaining, recruitment, communication and remuneration inside organization will result in better performance of the police department and lead to build trust and better image of police department. Theoretical implications and future area suggestions are also incorporated in the study.
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Arize, Augustine C., Ioannis N. Kallianiotis, Ebere Eme Kalu, John Malindretos, and Moschos Scoullis. "A Multidude of Econometric Tests: Forecasting the Dutsch Guilder." International Journal of Economics and Finance 9, no. 9 (August 10, 2017): 94. http://dx.doi.org/10.5539/ijef.v9n9p94.
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This paper studies a diversity of exchange rate models, applies both parametric and nonparametric techniques to them, and examines said models’ collective predictive performance. We shall choose the forecasting predictor with the smallest root mean square forecast error (RMSE); the empirical evidence for a better type of exchange rate model is in equation (34), although none of our evidence gives an optimal forecast. At the end, these models’ error correction versions will be fit so that plausible long-run elasticities can be imposed on each model’s fundamental variables.
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Eberts, Randall W., and Joe A. Stone. "On the Contract Curve: A Test of Alternative Models of Collective Bargaining." Journal of Labor Economics 4, no. 1 (January 1986): 66–81. http://dx.doi.org/10.1086/298094.
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Sun, Xiaohan. "China Collective Negotiation in COVID-19: What We learn from a Comparative Analysis of China, the United States and Germany." American Journal of Trade and Policy 7, no. 2 (September 20, 2020): 51–64. http://dx.doi.org/10.18034/ajtp.v7i2.486.
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Labor conflicts can be solved by an efficient collective bargaining system with consensus-based. Since the economic uncertainty caused by COVID-19, employers have been shut down or have had to reduce operations drastically and many employers want to furlough or dismiss employees under certain circumstances in China. Meanwhile, many workers have lost income. Since workers have gone back to the worksite in March 2020, labor unrest has spread out in order to ask for wage arrears in the manufactory, construction, and service sectors in terms of strikes map from China Labor Bulletin. The paper targets on three different countries with top economies, and examines its bargaining models to keep industrial peace. The paper argues that China bargaining model under state-control strongly depends on government intention for intervention where there is labor unrest, and the system less focuses on self-governance which may result in a hard time to maintain industrial resources, even though the state issued the related policies to highly encouraged companies to hold a negotiation before the lay off workers, reduce wages or work time in order to be employed. While fewer polices and China traditional command-and-control regulation models could not provide an efficient approach to relief labor unrest in the pandemic, Germany's bargaining model is more flexible to provide an example for new governance and co-determination. Also, the bargaining model with sector-level reforms could do more for the United States private sectors in order to the corporation instead of adversarialism. From a comparison among three collective bargaining models, the paper concludes the approaches to protect workers’ rights from global perspectives.
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Kirov, Vassil N., and Patrick Thill. "The impact of crisis and restructuring on employment relations in banking: The cases of France, Luxembourg and Romania." European Journal of Industrial Relations 24, no. 3 (January 9, 2018): 297–313. http://dx.doi.org/10.1177/0959680117752047.
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This article discusses the dynamics of collective bargaining in the management of restructuring, drawing on the example of the banking sector in France, Luxembourg and Romania. We show that the organized decentralization of the corporatist or statist models of France and Luxembourg helped sustain employment relations systems and cushion crisis effects. Bargaining outcomes included internal mobility and training. In Romania, by contrast, disorganized decentralization meant that solutions were left to the company level and to market forces.
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Fox, Carol. "Union Democracy and Collective Bargaining: Public Policy in Transition." Journal of Industrial Relations 41, no. 3 (September 1999): 393–416. http://dx.doi.org/10.1177/002218569904100304.
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Union democracy was a preoccupation of the federal legislature from the 1920s to the 1970s. It was quiescent as a public policy issue for two decades until revived by the Howard government in 1996. Examination of the statutory provisions for union democracy reveals deficiencies in terms of the benchmarks provided by both liberal pluralist and Marxist models. The traditional rationale for state intervention in union government is found to have been significantly weakened. At the same time, union democracy has been reinstated as a principal object of the statute. A new rationale for intervention is needed, as is a review of current regulation to assess its capacity to facilitate the achievement of tbe statutory objects. In analysing the relationship between regulation for union democracy and for participation in collective bargaining we can identify otber anomalies. These include: different standards for participation in the arbitration spbere (consent awards) from the bargaining sphere ( certified agreements); variation in the degree of regulation of different decisions—high-level regulation for elections and for merger decisions, and low-level regulation of decisions relating to the primary union function of improving wages and conditions; and extension of participa tion rights to non-unionists in the negotiation of union agreements, that is, elevation of an 'employee constituency' at the expense of a 'union-member constituency'. The industrial citizenship paradigm serves to highlight the anomalies and also resonates with the currently espoused value of employee choice. This model could provide a theoretical foundation for a more comistent and principled approach to public policy concerning participation in collective bargaining.
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Wang, Zhiyuan. "Democracy, Policy Interdependence, and Labor Rights." Political Research Quarterly 70, no. 3 (April 20, 2017): 549–63. http://dx.doi.org/10.1177/1065912917704517.
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In this study, I examine how domestic regimes mitigate pressure from economically competing states to reduce the protection of labor rights. I argue that democratic states provide higher protection and are more resistant to this downward policy pressure for two main reasons. Directly, democracy empowers workers through freedom of association and enfranchisement. Indirectly, democracy offers better protection of property rights, which lessens the need to use labor rights as an economic incentive. I also argue that this resistance to the downward pressure is more pronounced in practice than in law. These expectations are supported through spatial analyses of a new global dataset on association and collective-bargaining rights for the period 1994–2012. The results remain robust to alternative measures of labor rights, different model specifications, and various econometric estimators.
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Szabó, Imre. "Trade unions and the sovereign power of the state. A comparative analysis of employer offensives in the Danish and Irish public sectors." Transfer: European Review of Labour and Research 24, no. 2 (March 25, 2018): 163–78. http://dx.doi.org/10.1177/1024258918762077.
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The changing composition of trade unions has far-reaching consequences for the relationship between unions and the polity. In particular, the concentration of trade union membership in the public sector – a process that has been taking place in most EU countries – implies a shift away from collective agreements towards legislation as the dominant way of managing employment relations. Pluralist models of collective bargaining assume a neutral, mediating role of the state, but in the public sector the state by definition acts as an employer as well. The state is equipped with the sovereign power to circumvent traditional bargaining agreements and force its will upon trade unions through legislation. The article investigates major bargaining disputes in Europe after 2008, focusing on two countries (Ireland and Denmark) that have different political environments and that, although affected differently by the financial crisis, underwent similar government interventions in labour relations. The findings suggest that a shift towards legislation is a tendency that affects all types of industrial relations systems.
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AYYILDIZ, Sedat. "AS A RESULT OF THE TRANSFORMATION IN PRODUCTION RELATIONS, THE SEARCH FOR A NEW VISION IN TURKISH LABOR UNIONISM." JOURNAL OF INSTITUTE OF ECONOMIC DEVELOPMENT AND SOCIAL RESEARCHES 7, no. 28 (September 28, 2021): 60–80. http://dx.doi.org/10.31623/iksad072805.
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After experiencing its half-century golden period between 1950-2000, the system of trade unionism and collective bargaining, which arose with the concern of turning the class political struggle, which entered the agenda of humanity into a peaceful situation, faced a crisis of existence and function. A change in the understanding of Labor Relations and Business Management, a change in the perspective of working and production with modern human resource management techniques, has led to the need to reproduce the system of trade unionism and collective bargaining. Globalization, international competition and small businesses succumbing to mass production have led to trade union monopolism and cumbersome organizations. Trade union organizations have fallen behind the human resource vision they represent and have begun to fade in the trap of wage unionism. This led to a trend of changes in the way trade unionism was conducted, but the components of new trade unionism did not fall into place. The traditional collective bargaining system, which can find a living space thanks to the introduction of wage costs against the price-quality-sales performance in production, has had to express itself again as this cycle begins to be questioned. The main concerns about trade unionism have changed as follows: It has become vital that unionism is peace-oriented rather than fight-oriented, compromise-oriented rather than debate-oriented, solution-oriented rather than Problem-Oriented, Development and life-oriented rather than wage-oriented, strategy and employment-oriented rather than bargaining-oriented. Therefore, especially in trade unionism, it is clear that there is a need for “trade unionism and community bargaining system reform”, which begins with the qualifications and election times of trade union managers and extends to managing flexible working models and from there to the correct perception and correct interpretation of international company relations and paves the way for entrepreneurship. Keywords: Trade Unionism, Collective Bargaining, Labor, Industrial Relations, Productivity, Innovation, Human Resources
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Cohn, Samuel, and Adrienne Eaton. "Historical Limits on Neoclassical Strike Theories: Evidence from French Coal Mining, 1890–1935." ILR Review 42, no. 4 (July 1989): 649–62. http://dx.doi.org/10.1177/001979398904200413.
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This study analyzes the determinants of strikes in French coal mining over the period 1890–1935. The results indicate that factors emphasized by traditional bargaining power models were more important determinants of strikes in that setting than was economic variability. This finding supports the hypothesis that neoclassical theories of strikes—Hicksian theories that strikes are a function of the parties' lack of information about the economic environment in which bargaining takes place—are inappropriate in some historical and political contexts. Specifically, the authors argue that the many settings where (as in the case considered) strikes are politically motivated, firms have simple economic structures, and collective bargaining is poorly institutionalized should provide evidence discontinuing neoclassical predictions.
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Sánchez-Cubo, Francisco, José Mondéjar-Jiménez, Alejandro García-Pozo, and Mauro Maltagliati. "Keep It Simple: A Methodological Discussion of Wage Inequalities in the Spanish Hospitality Industry." Mathematics 11, no. 5 (February 27, 2023): 1163. http://dx.doi.org/10.3390/math11051163.
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Human capital in hospitality has been widely addressed by applying sophisticated econometric methods. However, for the Spanish case, there was a gap in the analyses as the crucial importance of collective agreements was undervalued. This paper redesigns the conceptualisation of the variables and applies a subsequent new classification to job positions, as it deals with the outliers at different levels of rigorousness. Then, linearised and quantile regressions were run for each case, obtaining an outcome of thirty values for each variable. The analyses and comparisons show the high importance of collective agreements on salaries, the noticeable low values of human capital variables, and provides additional information for the nationality and gender gaps, the latter strikingly high in upper professional categories. Overall, this paper demonstrates the importance of a proper study design to prevent advanced econometric models from falling into bias and it minimises the differences between methods.
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Moore, Sian, and Stephanie Tailby. "The changing face of employment relations: equality and diversity." Employee Relations 37, no. 6 (October 5, 2015): 705–19. http://dx.doi.org/10.1108/er-06-2015-0115.
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Purpose – The purpose of this paper is to explore what has happened to the notion and reality of equal pay over the past 50 years, a period in which women have become the majority of trade union members in the UK. It does so in the context of record employment levels based upon women’s increased labour market participation albeit reflecting their continued over-representation in part-time employment, locating the narrowed but persistent overall gender pay gap in the broader picture of pay inequality in the UK. Design/methodology/approach – The paper considers voluntary and legal responses to inequality and the move away from voluntary solutions in the changed environment for unions. Following others it discusses the potential for collective bargaining to be harnessed to equality in work, a potential only partially realised by unions in a period in which their capacity to sustain collective bargaining was weakened. It looks at the introduction of a statutory route to collective bargaining in 2000, the National Minimum Wage from 1999 and at the Equality Act 2010 as legislative solutions to inequality and in terms of radical and liberal models of equality. Findings – The paper suggests that fuller employment based upon women’s increased labour market activity have not delivered an upward pressure on wages and has underpinned rather than closed pay gaps and social divisions. Legal measures have been limited in the extent to which they have secured equal pay and wider social equality, whilst state support for collective solutions to equality has waned. Its replacement by a statutory minimum wage initially closed pay gaps, but appears to have run out of steam as employers accommodate minimum hourly rates through the reorganisation of working time. Social implications – The paper suggests that statutory minima or even voluntary campaigns to lift hourly wage rates may cut across and even supersede wider existing collective bargaining agreements and as such they can reinforce the attack on collective bargaining structures, supporting arguments that this can reduce representation over pay, but also over a range of other issues at work (Ewing and Hendy, 2013), including equality. Originality/value – There are then limitations on a liberal model which is confined to promoting equality at an organisational level in a public sector subject to wider market forces. The fragmentation of bargaining and representation that has resulted will continue if the proposed dismantling of public services goes ahead and its impact upon equality is already suggested in the widening of the gender pay gap in the public sector in 2015.
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Strunk, Katharine O., and Bradley D. Marianno. "Negotiating the Great Recession: How Teacher Collective Bargaining Outcomes Change in Times of Financial Duress." AERA Open 5, no. 2 (April 2019): 233285841985508. http://dx.doi.org/10.1177/2332858419855089.
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This article examines how teacher collective bargaining agreements (CBAs), teacher salaries, and class sizes changed during the Great Recession. Using a district-level data set of California teacher CBAs that includes measures of subarea contract strength and salaries from 2005–2006 and 2011–2012 tied to district-level longitudinal data, we estimate difference-in-difference models to examine bargaining outcomes for districts that should have been more or less fiscally constrained. We find that unions and administrators change critical elements of CBAs and district policy during times of fiscal duress. This includes increasing class sizes, reducing instructional time, and lowering base salaries to relieve financial pressures and negotiating increased protections for teachers in areas with less direct financial implications, including grievance procedures and nonteaching duties.
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Huber, John D. "Cabinet Decision Rules and Political Uncertainty in Parliamentary Bargaining." American Political Science Review 95, no. 2 (June 2001): 345–60. http://dx.doi.org/10.1017/s0003055401002052.
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We investigate how cabinet decision-making rules interact with political uncertainty to affect the outcomes of bargaining processes in parliamentary systems. Our formal models compare two types of decisions rules: (1) those that give prime ministers unilateral authority to demand a vote of confidence and (2) those that require prime ministers to obtain collective cabinet approval for confidence motions. We examine these models under assumptions of complete information and of political uncertainty, that is, party leaders lack information about the precise policies that others in the governing coalition will support. Our analysis suggests that the nature of the cabinet decision rules should influence the distribution of bargaining power, the ability to exploit political uncertainty, the likelihood of inefficient government terminations, the circumstances surrounding such failures, and, indirectly, the political considerations that parties face when choosing prime ministers during government formation. Simple empirical tests support some of these insights.
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Han, Eunice S. "The Impact of Teachers Unions on Teachers’ Well-Being Under Various Legal Institutions: Evidence From District–Teacher Matched Data." AERA Open 5, no. 3 (July 2019): 233285841986729. http://dx.doi.org/10.1177/2332858419867291.
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This article examines how teachers unions affect teachers’ well-being under various legal institutions. Using a district–teacher matched data set, this study identifies the union effects by three approaches. First, I contrast teacher outcomes across different state laws toward unions. Second, I compare the union–nonunion differentials within the same legal environment, using multilevel models and propensity score matching. Finally, unexpected legal changes restricting the collective bargaining of teachers in four states form a natural experiment, allowing me to use the difference-in-difference estimation to identify the causal effect of weakening unionism on teacher outcomes. I find that (a) many teachers join unions even when bargaining is rarely or never available, and meet-and-confer or union membership rate affects teachers’ lives in the absence of a bargaining contract; (b) how unions influence teacher outcomes vary greatly by different legal environment; and (c) the changes in public policy limiting teachers’ bargaining rights significantly decrease teacher compensation.
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Weinberg, Bradley R. "Third-Party Intervention and the Preservation of Bargaining Relationships." ILR Review 73, no. 2 (August 2, 2019): 498–527. http://dx.doi.org/10.1177/0019793919864263.
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This article uses longitudinal bargaining contract data to examine whether third-party dispute resolution procedures improve the health of bargaining relationships and contribute to their preservation. The author uses survival analysis to assess whether the procedures correlate with the likelihood of relationship dissolution. This analysis shows that earlier procedures in the dispute resolution process, such as conciliation and mediation, are related to a lower likelihood of dissolution than are later ones. The author then uses dynamic panel models to consider whether third-party intervention pushes the parties to settle subsequent collective agreements voluntarily or earlier in the process, but he finds no evidence to this effect.
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Reeves, Aaron, Rachel Loopstra, and Valerie Tarasuk. "Wage-Setting Policies, Employment, and Food Insecurity: A Multilevel Analysis of 492 078 People in 139 Countries." American Journal of Public Health 111, no. 4 (April 2021): 718–25. http://dx.doi.org/10.2105/ajph.2020.306096.
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Objectives. To examine the association between wage-setting policy and food insecurity. Methods. We estimated multilevel regression models, using data from the Gallup World Poll (2014–2017) and UCLA’s World Policy Analysis Center, to examine the association between wage setting policy and food insecurity across 139 countries (n = 492 078). Results. Compared with countries with little or no minimum wage, the probability of being food insecure was 0.10 lower (95% confidence interval = 0.02, 0.18) in countries with collective bargaining. However, these associations varied across employment status. More generous wage-setting policies (e.g., collective bargaining or high minimum wages) were associated with lower food insecurity among full-time workers (and, to some extent, part-time workers) but not those who were unemployed. Conclusions. In countries with generous wage-setting policies, employed adults had a lower risk of food insecurity, but the risk of food insecurity for the unemployed was unchanged. Wage-setting policies may be an important intervention for addressing risks of food insecurity among low-income workers.
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Menegatti, Emanuele, and Tamás Gyulavári. "Who Regulates Employment? Trends in the Hierarchy of Labour Law Sources." International Journal of Comparative Labour Law and Industrial Relations 38, Issue 1 (March 1, 2022): 31–52. http://dx.doi.org/10.54648/ijcl2022002.
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The hierarchy of labour law sources plays an important role in shaping the employment protection afforded by national labour law. This article provides a comparative overview of the global trends in the relation between the different layers of employment regulation. To this end, it considers three cluster of countries, respectively the European coordinated market economies, the liberal market economies and the European post-socialist countries. This analysis will make it possible to identify common patterns of transformation of the hierarchy of sources, indicating the current direction of labour law. Based on the three models, we discuss the following four trends and their interactions: (1) the increasing role of legislation; (2) the decentralization and decline of collective bargaining; (3) the growing importance of individual employment contracts based on waivers; (4) the erosion of the favourability principle by means of clauses allowing less favourable terms of employment. We argue that these parallel changes may lead to a worsening of employment conditions. Sources of Labour Law, Hierarchy, Favour Principle, Statutory Mandatory Rules, Collective Bargaining Decentralisation, Freedom of Contract, Flexibilization
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Akçay, Erol, and Joan Roughgarden. "Negotiation of mutualism: rhizobia and legumes." Proceedings of the Royal Society B: Biological Sciences 274, no. 1606 (September 26, 2006): 25–32. http://dx.doi.org/10.1098/rspb.2006.3689.
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The evolution and persistence of biological cooperation have been an important puzzle in evolutionary theory. Here, we suggest a new approach based on bargaining theory to tackle the question. We present a mechanistic model for negotiation of benefits between a nitrogen-fixing nodule and a legume plant. To that end, we first derive growth rates for the nodule and plant from metabolic models of each as a function of material fluxes between them. We use these growth rates as pay-off functions in the negotiation process, which is analogous to collective bargaining between a firm and a workers' union. Our model predicts that negotiations lead to the Nash bargaining solution, maximizing the product of players' pay-offs. This work introduces elements of cooperative game theory into the field of mutualistic interactions. In the discussion of the paper, we argue for the benefits of such an approach in studying the question of biological cooperation.
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López López, Julia. "Introduction. Debates on Collective Bargaining in a Time of Economic Crisis: The Spanish Case in Context." Oñati Socio-legal Series 9, no. 1 (April 1, 2019): 1–6. http://dx.doi.org/10.35295/osls.iisl/0000-0000-0000-1008.
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Collective Labor Law as a mechanism of agency through workers representation has been challenged more than ever during recent last decades. The policies that have adjusted labor rights to new scenarios of economic policies have impacted collective bargaining structures and contents. The debates on centralization and de-centralization, workers participation, unions and workers strategies to countervail the erosion of labor rights have been part of the social agenda. Among the debates one very important one involves the study of the cases of the Basque Country and Catalonia. Their models of collective bargaining allow us to examine different strategies to achieve social goals through collective action with more successful results in the Basque case. El Derecho Colectivo del Trabajo como mecanismo de agency para las representaciones de los trabajadores ha tenido en las últimas décadas uno de los periodos más desafiantes en la consecución de sus objetivos sociales. Las políticas de ajuste a la crisis económica con nuevos escenarios políticos han impactado no solo en las estructuras de negociación colectiva sino además en los contenidos de los convenios. Debates en torno a centralización-descentralización, participación, estrategias para contrarrestar los efectos de erosión de los derechos sociales han sido parte de la agenda social. Entre los debates, el estudio que se refiere a los casos de País Vasco y Catalunya, en cuanto a las estructuras de negociación, es interesante a la hora de presentar las diferencias estratégicas y los mejores resultados en el caso vasco.
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Osborne-Lampkin, La’Tara, Lora Cohen-Vogel, Li Feng, and Jerry J. Wilson. "Researching Collective Bargaining Agreements: Building Conceptual Understanding in an Era of Declining Union Power." Educational Policy 32, no. 2 (December 6, 2017): 152–88. http://dx.doi.org/10.1177/0895904817745378.
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Here, we examine over two decades of empirical literature to explore the ways scholars have been working to reveal the changing set of policy and political conditions in which teachers unions are operating. In this context, we identify the conceptual models educational researchers have used to frame their research and the applications of these frameworks in the literature on teachers unions. Our findings reveal that the research on teachers unions over the past two decades provides deep historical context. Less evident in this research are explicit conceptual groundings to theory and how the theoretical/empirical literature is applied in inquiry.
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Wade, Magic M. "Addressing the “Union Problem” during the Great Recession: State Approaches to Reforming Collective Bargaining." Labor Studies Journal 44, no. 3 (July 2, 2018): 236–61. http://dx.doi.org/10.1177/0160449x18783520.
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Conventional narratives suggest that during the Great Recession, Republican-controlled state governments seized a political opportunity to de-unionize labor strongholds by enacting sweeping right-to-work laws. However, I contend that two distinct reform approaches were pursued during the recession. One type aimed to restrict the ability of unions to organize and maintain membership (the “right-to-work” approach), while the other sought to constrain collective bargaining without hampering union organizing. My analysis of 2,545 labor relations bills introduced across the U.S. States from 2007 to 2014 confirms the existence of two broad models of reform, each with differing implications for organized labor and partisan politics.
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Sarkodie, Samuel Asumadu, Emmanuel Ackom, Festus Victor Bekun, and Phebe Asantewaa Owusu. "Energy–Climate–Economy–Population Nexus: An Empirical Analysis in Kenya, Senegal, and Eswatini." Sustainability 12, no. 15 (July 31, 2020): 6202. http://dx.doi.org/10.3390/su12156202.
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Motivated by the Sustainable Development Goals (SDGs) and its impact by 2030, this study examines the relationship between energy consumption (SDG 7), climate (SDG 13), economic growth and population in Kenya, Senegal and Eswatini. We employ a Kernel Regularized Least Squares (KRLS) machine learning technique and econometric methods such as Dynamic Ordinary Least Squares (DOLS), Fully Modified Ordinary Least Squares (FMOLS) regression, the Mean-Group (MG) and Pooled Mean-Group (PMG) estimation models. The econometric techniques confirm the Environmental Kuznets Curve (EKC) hypothesis between income level and CO2 emissions while the machine learning method confirms the scale effect hypothesis. We find that while CO2 emissions, population and income level spur energy demand and utilization, economic development is driven by energy use and population dynamics. This demonstrates that income, population growth, energy and CO2 emissions are inseparable, but require a collective participative decision in the achievement of the SDGs.
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BENIN, SAMUEL, and JOHN PENDER. "Collective action in community management of grazing lands: the case of the highlands of northern Ethiopia." Environment and Development Economics 11, no. 1 (January 30, 2006): 127–49. http://dx.doi.org/10.1017/s1355770x05002688.
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Collective action can play a significant role in sustainable management of common grazing lands through restricting access and regulating use. However, it is not clear why there are often violations of grazing restrictions in equilibrium. This paper first presents a theoretical framework of collective action in community management of grazing lands that explicitly models individual violations behaviour. Then data from the highlands of Amhara region of Ethiopia are used to test the model predictions to examine the impact of policy-relevant factors on collective establishment of grazing restrictions and violations of grazing restrictions. Econometric results show that collective action in community grazing land management is likely to be more beneficial and effective in communities with better market access or higher populations. Collective action, on the other hand, is less likely to be successful in communities with greater social, economic, or cultural heterogeneity or more affluent members. Factors related to greater livestock profitability, such as rainfall, or fixed costs of negotiating agreements, such as total land area of the community, have ambiguous effects, as they are associated with establishment of grazing restrictions as well as violating the restrictions.
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Schroeder, Wolfgang, and Rainer Weinert. "Managing Decentralization: The Strategy of Institutional Differentiation in German Industrial Relations." German Politics and Society 17, no. 4 (December 1, 1999): 52–73. http://dx.doi.org/10.3167/104503099782486770.
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The approach of the new millennium appears to signal the demiseof traditional models of social organization. The political core ofthis process of change—the restructuring of the welfare state—andthe related crisis of the industrywide collective bargaining agreementhave been subjects of much debate. For some years now inspecialist literature, this debate has been conducted between theproponents of a neo-liberal (minimally regulated) welfare state andthe supporters of a social democratic model (highly regulated). Thealternatives are variously expressed as “exit vs. voice,” “comparativeausterity vs. progressive competitiveness,” or “deregulation vs.cooperative re-regulation.”
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Thomas, Daniel C., and Ben Tonra. "To What Ends EU Foreign Policy? Contending Approaches to the Union’s Diplomatic Objectives and Representation." Hague Journal of Diplomacy 7, no. 1 (2012): 11–29. http://dx.doi.org/10.1163/187119112x609176.
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Summary The strengthened Office of the High Representative for Foreign Affairs and Security Policy and the new European External Action Service (EEAS) presuppose a set of interests and/or values that the European Union (EU) wishes to pursue on the world stage. But what are those interests and/or values and how does the EU reach agreement on them? Rather than simply ‘cutting and pasting’ from EU treaties and strategy papers, this article identifies seven distinct theoretical models of how the EU and its member states arrive collectively at a definition of their diplomatic objectives. The seven models include intergovernmentalist models of veto threats and log-rolling, normative institutionalist models of cooperative bargaining and entrapment, and constructivist and sociological institutionalist models of elite socialization, Europeanization and collective identity formation. The article identifies the logics of each model and notes their implications for the role of the EU’s new foreign policy institutions.
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Segal, Martin. "Post-Institutionalism in Labor Economics: The Forties and Fifties Revisited." ILR Review 39, no. 3 (April 1986): 388–403. http://dx.doi.org/10.1177/001979398603900306.
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This paper describes and evaluates the analytical model of the labor market developed by prominent labor economists of the 1940s and 1950s. The author argues that the post-institutionalist model made significant and lasting contributions to the analysis of labor mobility and the process of job search; to the formulation of models of union policies and the evaluation of the impact of collective bargaining; to the analysis of the factors that shape internal wage structure and contribute to the rise of internal labor markets; and, by its emphasis on the critical role played by the forces of demand, to the analysis of the wage determination process.
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Moreira Gomes, Ana Virgínia, and Rupa Banerjee. "The guarantee of freedom of association and collective bargaining rights to domestic workers: two opposite models, Brazil and Canada." Pensar - Revista de Ciências Jurídicas 22, no. 03 (2017): 1–15. http://dx.doi.org/10.5020/2317-2150.2017.6363.
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Minardi, Saverio. "Firm-level agreements, employment strategies and temporary workers." Employee Relations: The International Journal 42, no. 1 (January 6, 2020): 194–212. http://dx.doi.org/10.1108/er-01-2019-0062.
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Purpose The purpose of this paper is to investigate the impact of two-tier firm-level collective agreements on firms’ propensity to use temporary employment, accounting for the process of self-selection of firms into different bargaining levels in the Italian context. It further examines which firm-level characteristics drive this process of selection. Design/methodology/approach The empirical analysis uses a panel data set of Italian firms for the years 2005, 2007, 2010 and 2015. Estimations are produced and compared through ordinary least square regression, random-effects and fixed-effects models. Findings Results show that enterprises adopting two-tier firm-level agreements (TTFA) are associated with lower levels of temporary workers. However, a longitudinal analysis suggests that introducing a TTFA does not impact firms’ propensity to employ temporary workers. This novel finding highlights the presence of a selection process based on firm-level time-constant characteristics. The paper argues that these characteristics refer to management orientation toward high-road rather than low-road employment strategies. Further evidence is brought in support of this claim, showing that firms’ propensity toward the provision of training for their labor force partially explain the process of selection. Originality/value The study is the first to analyze the impact of secondary-level collective agreements on firms’ reliance on temporary employment, offering new evidence on the causes of the expansion of temporary employment. It further highlights the relevance of employers’ strategies in shaping the impact of the bargaining structure.
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Menashe, Maayan. "The Race to the Bottom Revisited: International Labour Law, Global Trade and Evolutionary Game Theory." Oxford Journal of Legal Studies 40, no. 1 (November 13, 2019): 53–81. http://dx.doi.org/10.1093/ojls/gqz029.
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Abstract This article revisits the ‘race to the bottom’ in international labour law, in light of new developments in evolutionary and epistemic game theory and considering new empirical findings on the economic effects of labour rights. Accordingly, it explores two solutions to this collective action problem not previously analysed in labour law literature—‘indeterminate play’ and the ‘correlating device’—and it shows how these solutions relate to international trade law and international labour law. Moreover, a new perspective is offered, according to which international labour law and international trade law can be complementary in fostering global co-operation on labour regulation and in supporting development efforts. Through a novel characterisation of global labour governance according to three game theoretical models, this study ultimately highlights the importance of freedom of association and collective bargaining in enhancing co-operation among states and promoting processes by which countries’ social and economic development can be incrementally raised.
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Booysen, Frederik, and Sevias Guvuriro. "Gender Differences in Intra-Household Financial Decision-Making: An Application of Coarsened Exact Matching." Journal of Risk and Financial Management 14, no. 10 (October 6, 2021): 469. http://dx.doi.org/10.3390/jrfm14100469.
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Most studies that explore collective models of intra-household decision-making use economic outcomes such as human capital, earnings, assets, and relative income shares as proxies of the relative distribution of bargaining power. These studies, however, fail to incorporate important measures of control over and management of the economic resources within households. In the current study, a direct measure of financial decision-making power within the household is used to directly assess the distribution of bargaining power. Coarsened exact matching, an identification strategy not yet applied in studies of this nature, is applied to couple-level observational data from South Africa’s longitudinal National Income Dynamics Study. The influence of gender differences in intra-household decision-making on resource allocations to per capita household expenditure is assessed. In the case of greater financial decision-making power in couples being assigned to wives rather than husbands, per capita household expenditure on education increases significantly. The empowerment of women with financial decision-making power therefore holds the promise of realizing the benefits of investments in human capital.
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Verge, Pierre. "Vision d'une révision du Code du travail." Les Cahiers de droit 20, no. 4 (April 12, 2005): 901–34. http://dx.doi.org/10.7202/042351ar.
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Would a codification of labour law — in the Continental meaning of the word, and not a mere consolidation of existing statutes — enhance the development of this field of law ? Would the resulting instrument be likely to generate more appropriate ways of dealing with labour situations, whether or not they pertain to a collective bargaining context ? Adjective as well as substantive law would have to be involved in such an exercise. The latter aspect raises the fundamental issue of the proper relationship between the general law — civil law essentially — and labour law. What degree of autonomy is necessary to the integrity of the specialized law ? Conversely, to what extent is the general law to be relied upon to provide the necessary second-line set of legal provisions ? For instance, the two sets of legal rules entertain different views as to the termination of the employment relationship and as to the effect of a collective agreement. A well-integrated body of labour law should, in the author's opinion, govern comprehensively labour situation. The codifying process would also aim at eliminating internal discrepancies and a simpler, more accessible legal subsystem would emerge. As to the adjective aspects of labour law, the identification of desirable forms of third-party intervention relating to both collective bargaining and labour standards legislation could lead to appropriate jurisdictional arrangements. In the case of industrial conflicts, of particular interest are the flexible powers of intervention with which the Canada and British Columbia labour boards are endowed. Consideration should also be paid to certain European models — namely the Conseil de prud'hommes — which allow both conciliation and adjudication to take place in the solving of normative law conflicts of application. A full-fledged Labour Code would indeed invite the setting up of a more authentic Labour Court.
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Murdoch, James C., Todd Sandler, and Laurna Hansen. "An Econometric Technique for Comparing Median Voter and Oligarchy Choice Models of Collective Action: The Case of the Nato Alliance." Review of Economics and Statistics 73, no. 4 (November 1991): 624. http://dx.doi.org/10.2307/2109401.
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Chandrashekaran, Murali, Beth A. Walker, James C. Ward, and Peter H. Reingen. "Modeling Individual Preference Evolution and Choice in a Dynamic Group Setting." Journal of Marketing Research 33, no. 2 (May 1996): 211–23. http://dx.doi.org/10.1177/002224379603300208.
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Organizational buying and strategic marketing decisions often emerge from a messy process of belief accommodation and compromise. In a longitudinal field study, the authors investigate how the beliefs and preferences of individual actors in a collective decision developed and changed. This provides a rare opportunity to relate beliefs and social influence to articulated preferences, as well as to evaluate the basic assumptions that underlie persuasive arguments theory, a prominent theory of group polarization. Econometric models are employed to test proposed relationships between group processes and outcomes. A model incorporating both cognitive and social process variables accurately predicts 95% of the actors’ top choices. The authors provide new insights for understanding the dynamics underlying group polarization and exploring group processes in marketing.
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Kapelyushnikov, R. "Wage-setting Mechanisms in the Russian Industry." Voprosy Ekonomiki, no. 4 (April 20, 2004): 66–90. http://dx.doi.org/10.32609/0042-8736-2004-4-66-90.
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The paper examines a specific model of wage-setting evolved in Russia under transition. Using new survey data author reveals paradoxical characteristics of wage-setting mechanisms at Russian industrial enterprises: very high union and collective agreement coverage; nearly unilateral control of managers over wage determination; close correlation between earnings and enterprises' performance; voluntary utilization of wage standards established by the state. The special section explores effects of fulfilling a new provision stipulated for by the recently adopted Labor Code to raise minimum wage to the subsistence minimum level. The author concludes that wage-setting in the Russian labor market is at odds with a textbook competitive model and poorly fits into many other sophisticated theoretical schemes (such as labor-managed firms, bargaining models etc.).
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Böckerman, Petri, Seppo Laaksonen, and Jari Vainiomäki. "Who bears the burden of wage cuts? Evidence from Finland during the 1990s." International Journal of Manpower 28, no. 2 (May 15, 2007): 100–121. http://dx.doi.org/10.1108/01437720710747947.
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PurposeThis paper aims to explore the incidence of nominal and real wage cuts in the Finnish private sector during the 1990s.Design/methodology/approachEstimation of econometric models for the probability of wage cuts using individual‐level wage survey data from the payroll records of the Finnish employers' organizations.FindingsCentralized nominal wage freezes together with a positive inflation rate produced real wage cuts for a large proportion of workers during the worst recession years of the early 1990s. Hence, centralized bargaining shaped the adjustment. The share of nominal wage cuts does not increase with falling inflation, which is consistent with downward wage rigidities. Full‐time workers have had a lower likelihood of wage cuts compared with part‐time workers. Declines in wages have also been more common in small plants. There is an important transitory component in wage cuts.Practical implicationsProvides useful information about the adjustment of wages at the individual level.Originality/valueFew papers have analysed individual and employer characteristics that account for wage cuts. The paper contributes to the literature on wage rigidity.