Reference Norms, Staggered Wages, and Wage Leadership: Theoretical Implications and Empirical Evidence*

Knell, Markus; Stiglbauer, Alfred

doi:10.1111/j.1468-2354.2012.00692.x

Cited by 12 publications

(9 citation statements)

References 56 publications

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“…Second, we do likewise at the industry-by-occupation level, at which collective bargaining agreements between employer associations and unions are typically concluded in Austria, typically distinguishing white and blue collar workers (e.g., white-collar workers in the insurance industry). Most CBAs cover all of Austria; some are state-specific (see Knell and Stiglbauer, 2012). Our industry proxy is 3-digit NACE.…”

Section: External Job Offers and Job Mobilitymentioning

confidence: 99%

Wages and the Value of Nonemployment*

Jäger

Schoefer

Young

et al. 2020

The Quarterly Journal of Economics

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Nonemployment is often posited as a worker’s outside option in wage-setting models such as bargaining and wage posting. The value of nonemployment is therefore a key determinant of wages. We measure the wage effect of changes in the value of nonemployment among initially employed workers. Our quasi-experimental variation in the value of nonemployment arises from four large reforms of unemployment insurance (UI) benefit levels in Austria. We document that wages are insensitive to UI benefit changes: point estimates imply a wage response of less than $0.01 per $1.00 UI benefit increase, and we can reject sensitivities larger than $0.03. The insensitivity holds even among workers with low wages and high predicted unemployment duration, and among job switchers hired out of unemployment. The insensitivity of wages to the nonemployment value presents a puzzle to the widely used Nash bargaining model, which predicts a sensitivity of $0.24–$0.48. Our evidence supports wage-setting models that insulate wages from the value of nonemployment.

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Section: External Job Offers and Job Mobilitymentioning

confidence: 99%

Wages and the Value of Nonemployment*

Jäger

Schoefer

Young

et al. 2020

The Quarterly Journal of Economics

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“…For Austria, using data on collectively bargained wages, reference norms play a significant role. External norms seem to matter more than internal norms (Knell and Stiglbauer, 2012). However, in an earlier paper, Pollan (2004) found that Austrian remuneration outcomes characterised by high and rising diversity were incompatible with a wage-pattern hypothesis.…”

Section: Literature Reviewmentioning

confidence: 96%

Aggregate Public-Private Remuneration Patterns in South Africa

Wörgötter

Nomdebevana

2020

Atl Econ J

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This paper investigates the public-private remuneration patterns in South Africa with time-series methods for the first time since the introduction of an inflation-targeting framework in 2000. Co-integration tests and analysis confirm that there is a stable, long-run relationship between nominal and real remuneration in the public and private sector. The adjustment to the deviations from this long-run relationship is strong and significant for public-sector remuneration, while private-sector wages neither respond to deviations from the long-run relationship nor lagged changes in public-sector remuneration. The causal direction from private- to public-sector remuneration does not change if real earnings are calculated with the gross domestic product deflator. This is confirmed by simple Granger-causality tests.

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“…homogeneous wage increases). An attempt to systematically study CBA wage floors and wage growth (building on the Statistics Austria-based "CBA wage floor index" (Tariflohnindex) in Knell and Stiglbauer (2012)), was not feasible due to a small number of observations.…”

Section: Firm Wage Premiamentioning

confidence: 99%