Insider Forces and Wage Determination.
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...
| Main Authors: | , |
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| Format: | Journal article |
| Language: | English |
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1990
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| _version_ | 1797077025726398464 |
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| author | Nickell, S Wadhwani, S |
| author_facet | Nickell, S Wadhwani, S |
| author_sort | Nickell, S |
| collection | OXFORD |
| description | 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. |
| first_indexed | 2024-03-07T00:11:53Z |
| format | Journal article |
| id | oxford-uuid:79828ae6-5705-4907-bfb8-01a3307f9a1c |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T00:11:53Z |
| publishDate | 1990 |
| record_format | dspace |
| spelling | oxford-uuid:79828ae6-5705-4907-bfb8-01a3307f9a1c2022-03-26T20:37:53ZInsider Forces and Wage Determination.Journal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:79828ae6-5705-4907-bfb8-01a3307f9a1cEnglishDepartment of Economics - ePrints1990Nickell, SWadhwani, SThis 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. |
| spellingShingle | Nickell, S Wadhwani, S Insider Forces and Wage Determination. |
| title | Insider Forces and Wage Determination. |
| title_full | Insider Forces and Wage Determination. |
| title_fullStr | Insider Forces and Wage Determination. |
| title_full_unstemmed | Insider Forces and Wage Determination. |
| title_short | Insider Forces and Wage Determination. |
| title_sort | insider forces and wage determination |
| work_keys_str_mv | AT nickells insiderforcesandwagedetermination AT wadhwanis insiderforcesandwagedetermination |