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

Author

Listed:
  • Bayo-Moriones, Alberto

    (University of Navarra)

  • Galdon-Sanchez, Jose Enrique

    (Universidad Pública de Navarra)

  • Martinez-de-Morentin, Sara

    (Universidad Pública de Navarra)

Abstract

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.

Suggested Citation

  • Bayo-Moriones, Alberto & Galdon-Sanchez, Jose Enrique & Martinez-de-Morentin, Sara, 2008. "What Are the Factors Behind Pay Settlements? Evidence from Spanish and British Data," IZA Discussion Papers 3401, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3401
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    References listed on IDEAS

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    More about this item

    Keywords

    establishment level data; compensation systems; labor market institutions; wage settlements;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

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