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Unions and the Labor Market for Managers

Pischke, Jörn-Steffen; Hallock, Kevin F.; DiNardo, John - 2000

We examine the relationship between the employment and compensation of managers and CEOs and the presence of a … monitoring, which requires more managers. The model also assumes rent sharing between workers, managers and the owners of the … firm. Unions, by redistributing rents towards the workers, lead to lower employment and lower pay for managers. Using a …

Persistent link: https://www.econbiz.de/10010262364

Reasons for wage rigidity in Germany

Franz, Wolfgang; Pfeiffer, Friedhelm - 2006

This study investigates institutional and economic reasons for downward wage rigidity regarding three occupational skill groups. Based on a survey of 801 firms in Germany and an econometric analysis, we find strong support for explanations based on the effects of labour union contracts and...

Persistent link: https://www.econbiz.de/10010267511

On reputation: a microfoundation of contract enforcement and price rigidity

Fehr, Ernst; Brown, Martin; Zehnder, Christian - 2008

We study the impact of reputational incentives in markets characterized by moral hazard problems. Social preferences have been shown to enhance contract enforcement in these markets, while at the same time generating considerable wage and price rigidity. Reputation powerfully amplifies the...

Persistent link: https://www.econbiz.de/10010268857

Preferences for collective versus individualised wage setting

Boeri, Tito; Burda, Michael C. - 2008

Standard models of equilibrium unemployment assume exogenous labour market institutions and flexible wage determination. This paper models wage rigidity and collective bargaining endogenously, when workers differ by observable skill and may adopt either individualized or collective wage...

Persistent link: https://www.econbiz.de/10010268890

Wage rigidity and job creation

Haefke, Christian; Sonntag, Marcus; van Rens, Thijs - 2008

Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume wages are rigid. We explore whether this explanation is consistent with the data. We show that the wage of newly hired workers, unlike the aggregate wage, is volatile and...

Persistent link: https://www.econbiz.de/10010270804

The Labor Market Effects of Payroll Taxes in a Middle-Income Country: Evidence from Colombia

Kugler, Adriana D.; Kugler, Maurice - 2003

We use a panel of manufacturing plants from Colombia to analyze how the rise in payroll tax rates over the 1980?s and 1990?s affected the labor market. Our estimates indicate that formal wages fall by between 1.4% and 2.3% as a result of a 10% rise in payroll taxes. This...

Persistent link: https://www.econbiz.de/10010274495

Fairness, Reciprocity, and Wage Rigidity

Bewley, Truman - 2004

This paper contains a review of empirical work related to wage rigidity, where researchers have collected their own data. The work includes field studies, economic experiments, and psychological surveys. Economists have done the field studies and experiments, and management scientists and...

Persistent link: https://www.econbiz.de/10010326712

On th Identification of Relative Wage Rigidity Dynamics.

Puhani, Patrick A. - 2000

We present a new and simple empirical methodology to identify relative wage rigidity dynamics. The methodology is applied to data from the Polish Labour Force Survey for the period 1994 to 1998. We estimate ceteris paribus changes in relative wage and unemployment differentials for various...

Persistent link: https://www.econbiz.de/10010262433

Wage Rigidities in Western Germany?

Puhani, Patrick A. - 2001

This paper investigates whether and in what sense the west German wage structure has been ?rigid? in the 1990s. To test the hypothesis that a rigid wage structure has been responsible for rising low-skilled unemployment, I propose a methodology which makes less restrictive identifying...

Persistent link: https://www.econbiz.de/10010262540

A Test of the ?Krugman Hypothesis? for the United States, Britain, and Western Germany

Puhani, Patrick A. - 2003

Rising wage inequality in the U.S. and Britain (especially in the 1980s) and rising continental European unemployment (with rather stable wage inequality) have led to a popular view in the economics profession that these two phenomena are related to negative relative demand shocks against the...

Persistent link: https://www.econbiz.de/10010262722