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National and sectoral factors in wage formation in Central and Eastern Europe

Stockhammer, Engelbert and Onaran, Özlem (2006) National and sectoral factors in wage formation in Central and Eastern Europe. Department of Economics Working Paper Series, 100. Inst. für Volkswirtschaftstheorie und -politik, WU Vienna University of Economics and Business, Vienna.

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The paper investigates the formation of wages in the New Member States in Central and Eastern Europe, in particular the question what the relative role of national and sectoral factors is. While the labor relations in these countries are still in the process of change, some pattern and national differences have emerged. The question is thus to what extent these differences in labor relations are reflected in wage formation. The literature on Western OECD economies is unanimous that coordination of wage bargaining does reduce the wage spread, but disagrees on its effects on unemployment and inflation. The paper analyses wage formation in Slovenia, Slovakia, Hungary, Poland, the Czech Republic and Lithuania by means of a panel analysis for manufacturing sectors. The average wage (in the total economy) serves as a national factor and sectoral productivity serves as a sectoral factor. In variations of the basic estimation equation the role of FDI and openness and of capital intensity and skill are also discussed. The results between countries are compared with the recent index of the coordination of collective bargaining by Visser (2005) and with cross country data on union density. (author's abstract)

Item Type: Paper
Keywords: wage formation / CEEC / wage spread / labor relations / FDI
Classification Codes: RVK QV 300 ; JEL P23, J50, J30
Divisions: Departments > Volkswirtschaft
Depositing User: Repository Administrator
Date Deposited: 18 Dec 2006 17:07
Last Modified: 21 Jul 2015 18:44
URI: http://epub.wu.ac.at/id/eprint/92


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