Determinants of Negotiated Wage Increases: An Empirical Analysis

Sparks, Gordon R.; Wilton, David A.

doi:10.2307/1909576

Cited by 25 publications

(8 citation statements)

References 7 publications

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“…Hamermesh (1970) is an earlier study which casts doubt on the importance of profit effects in the U.S., and Cume and McConnell (1992) similarly find negative results using more recent data. For Canadian contract data, Sparks and Wilton (1971) is a relatively early study that shows profits to be highly significant in wage equations. A recent paper by Christofides and Oswald (1992) confirms the significance of profits in Canadian wage determination; the long-run elasticity of wages to profits is less than 0.01, but given that percentage changes in profits are frequently very large (increases of greater than 100% are not uncommon), this effect is much more important than it may seem at first sight.…”

Section: Are Wages Influenced By Insider Factors?mentioning

confidence: 99%

Insiders and Outsiders in Union Models

Sanfey

1995

Journal of Economic Surveys

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This paper examines the importance of distinguishing between 'insiders' and 'outsiders' in models of union-firm bargaining. In general, insiders are those workers already established in the firm, while outsiders are either unemployed or working in temporary, low-security jobs. Modifying traditional union models to take account of this distinction is straightforward in one-period models, where the union is assumed to be indifferent to the welfare of outsiders, but is much more complicated in dynamic models. Some of the predictions of insider-outsider models concerning wage rigidity and unemployment are not robust. However, the prediction that wages will depend on both insider and outsider forces is robust and appears to be supported by the empirical evidence. Furthermore, evidence from the U.S. suggests that insider power should not be viewed as a purely union phenomenon.

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Section: Are Wages Influenced By Insider Factors?mentioning

confidence: 99%

Insiders and Outsiders in Union Models

Sanfey

1995

Journal of Economic Surveys

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“…17 Similar criticisms have been raised by Hamermesh (1970) and Sparks and Wilton (1971). 18 See the argument by Oi (1962) that firms hoard highly-priced labour in recessions due to the size of retraining costs.…”

Section: The Choice Of Wage Data For the Dependent Variablementioning

confidence: 91%

Empirical Foundations for the Canadian Phillips Curve

Rowley¹,

Wilton²

1974

The Canadian Journal of Economics

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“…A negative relationship can also be expected if uncompensated inflation forces wages to fall (Cramton and Tracy, 1992). Empirically, strikes were found to have a positive though weak effect upon negotiated wages among Canadian industries (Sparks and Wilton, 1971). A stronger positive effect was found among negotiations that were conducted in multiple stages (Auld et al, 1981).…”

Section: Introductionmentioning

confidence: 94%