Pay Developments in Britain and Germany: Collective Bargaining, ‘Benchmarking’, and ‘Mimetic Wages’ | Zendy

Werner Schmidt | Zendy; Bernd Dworschak | Zendy

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Pay Developments in Britain and Germany: Collective Bargaining, ‘Benchmarking’, and ‘Mimetic Wages’

Author(s) -

Werner Schmidt,

Bernd Dworschak

Publication year - 2006

Publication title -

european journal of industrial relations

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 1.251

H-Index - 43

eISSN - 1461-7129

pISSN - 0959-6801

DOI - 10.1177/0959680106061370

Subject(s) - benchmarking , collective bargaining , imitation , german , economics , industrial relations , labour economics , labor relations , market economy , management , psychology , social psychology , archaeology , history

This article examines the impact of national industrial relations institutions on paymovements in Britain and Germany between 1980 and 2000. Pay increases are slightlyhigher in Britain, despite the breakdown of multi-employer bargaining and agreementsin the UK and their persistence in Germany. Evidence shows that pay decisions inBritain are mainly determined by imitation and not by markets. The article suggeststhat a system of ‘pay benchmarking’ in Britain acts as asubstitute for the German ‘sectoral agreement model’ andexplains similarities in pay movements

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