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Institutional and Market Determinants of Wage Spillovers: Evidence from UAW Pattern Bargaining
Author(s) -
Budd John W.
Publication year - 1997
Publication title -
industrial relations: a journal of economy and society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.61
H-Index - 57
eISSN - 1468-232X
pISSN - 0019-8676
DOI - 10.1111/0019-8676.431997006
Subject(s) - economics , wage , efficiency wage , labour economics , wage bargaining , human settlement , empirical evidence , collective bargaining , philosophy , history , archaeology , epistemology
Empirical wage spillovers are often observed, but their theoretical explanation is controversial because they are consistent with institutional wage comparisons stemming from fairness or union politics, but also with neoclassical alternative wages or correlated labor demand shocks. The nature of wage spillovers is analyzed using a data set of United Automobile, Aerospace, and Agricultural Implement Workers of America (UAW) wage settlements. The results support the hypothesis that institutional wage spillovers augment neoclassical economic forces in determining wages, albeit with some weakening after 1980.