Insider Forces and Wage Determination

Datos Bibliográficos

ID9704677
AutoresStephen Nickell, Sushil Wadhwani (London School of Economics and Political Science)
Año1990
Volumen100
Número401
Páginas496
Fecha de publicación1990-06-01
Peer ReviewedSí
Open AccessNo
TipoARTICLE
RevistaThe Economic Journal (JOURNAL)
Identificadores de la revistaISSN: 0013-0133 • E-ISSN: 1468-0297
EditorialOxford University Press (OUP) (PUBLISHER)
DOI10.2307/2234136
OpenAlexW2139973090
IdiomaEN
Citas recibidas19

This paper investigates the relative importance of firm-specific factors (i.e., insider forces) in wage determination. Using firm-level data on 219 U.K. companies over 1974-82, it finds that a 1 percent rise in a firm's prices or productivity relative to the aggregate economy leads to a rise in relative wages of 0.1-0.2 percent. As a corollary to this, outside factors, like the aggregate wage and the unemployment rate, also play an important role. There is evidence for insider-based hysteresis effects, but these are inversely related to the extent to which firms take national agreements into account

Corollary · Economics · Hysteresis · Insider · Labour economics · Macroeconomics · Monetary economics · Productivity · Unemployment · Unemployment rate · Wage · Corporate Finance and Governance