Arbeitspapier
Why do capital intensive companies pay higher wages?
An obvious answer to this question is the capital-skill complementarity hypothesis originally proposed by Zwi Griliches (1969). But the relatively poor performance of this hypothesis suggests that other explanations are needed. Here we consider the labour union behaviour in the wage bargaining process as such an alternative. The explanation is based on the observation that capital intensive companies are more vulnerable to strike threats and may thus more easily give in for union wage demand. Thus, the bargaining power of unions is related to the capital-labour ratio. This paper provides some tests for these hypotheses with panel data for Finnish companies. The results give support to the wage bargaining hypothesis.
- ISBN
-
952-462-199-1
- Language
-
Englisch
- Bibliographic citation
-
Series: Bank of Finland Research Discussion Papers ; No. 5/2005
- Classification
-
Wirtschaft
Wage Level and Structure; Wage Differentials
Trade Unions: Objectives, Structure, and Effects
- Subject
-
wages
bargaining
wage distribution
panel data
- Event
-
Geistige Schöpfung
- (who)
-
Virén, Matti
- Event
-
Veröffentlichung
- (who)
-
Bank of Finland
- (where)
-
Helsinki
- (when)
-
2005
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Virén, Matti
- Bank of Finland
Time of origin
- 2005
Other Objects (12)
Why is Europe lagging behind?
Why break down centralized wage bargaining?
Why is equity capital expensive for opaque banks?
Why the marginal MRO rate exceeds the ECB policy rate?
Why are bank runs sometimes partial?
Why is Finland lagging behind in export growth?
Do networks in the stock exchange industry pay off? European evidence
Why do bank runs look like panic? A new explanation
Why is price discovery in credit default swap markets news-specific?
How well does foreign direct investment measure real investment by foreign-owned companies? Firm-level analysis
Why do growth rates differ? Evidence from cross-country data on private sector production
Volatility transfers between cycles: A theory of why the "great moderation" was more mirage than moderation
Why is Europe lagging behind?
Why break down centralized wage bargaining?
Why is equity capital expensive for opaque banks?
Why the marginal MRO rate exceeds the ECB policy rate?
Why are bank runs sometimes partial?
Why is Finland lagging behind in export growth?
Do networks in the stock exchange industry pay off? European evidence
Why do bank runs look like panic? A new explanation
Why is price discovery in credit default swap markets news-specific?
How well does foreign direct investment measure real investment by foreign-owned companies? Firm-level analysis
Why do growth rates differ? Evidence from cross-country data on private sector production
Volatility transfers between cycles: A theory of why the "great moderation" was more mirage than moderation
Why is Europe lagging behind?
Why break down centralized wage bargaining?
Why is equity capital expensive for opaque banks?
Why the marginal MRO rate exceeds the ECB policy rate?
Why are bank runs sometimes partial?
Why is Finland lagging behind in export growth?
Do networks in the stock exchange industry pay off? European evidence
Why do bank runs look like panic? A new explanation
Why is price discovery in credit default swap markets news-specific?
How well does foreign direct investment measure real investment by foreign-owned companies? Firm-level analysis
Why do growth rates differ? Evidence from cross-country data on private sector production