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

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Abstract

In this article, we use data from Spanish manufacturing plants to analyze the determinants of the importance attributed to several criteria when wages are adjusted. More specifically, the criteria we take into account in the study are the cost of living, the wages of the firm in relation to its competitors, the fulfillment of collective agreements at sector level, the need to recruit and retain employees, the performance of the organization, and the industrial relations climate. Our results show that the structural characteristics of the establishment, 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.

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  • Alberto Bayo-Moriones & Jose Enrique Galdon-Sanchez & Sara Martinez-de-Morentin, 2013. "The Process of Wage Adjustment: An Analysis Using Establishment- Level Data," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 1306, Departamento de Economía - Universidad Pública de Navarra.
    • Handle: RePEc:nav:ecupna:1306
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    More about this item

    Keywords

    human resource management; structural characteristics; trade unions; wage adjustment; wage setting arrangements;
    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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