Pay and Productivity in a Corporatist Economy: Evidence from Austria

Arbeitspapier

Conventional theory predicts that productivity gains lead to hikes in real pay. Efficiency wage theory hypothesizes that pay increases can lead to productivity improvements. But would such results be observed in a corporatist economy with centralized bargaining? For the case of Austria, a corporatist archetype, this study uses an innovative technique developed by Geweke to disentangle the relationship between pay and productivity. There already has been empirical evidence that pay demands in corporatist economies are relatively modest. Moreover, it has been claimed that corporatist coordination enhances the efficiency of labor contracts, by providing a mechanism to adjust to aggregate shocks. Our findings uncover another efficiency benefit of corporatism. For laborers in manufacturing, we find that wage hikes result in productivity gains. Managers, then, are rewarded following improvements in productivity.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 244

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Labor-Management Relations, Trade Unions, and Collective Bargaining: General ; Labor Contracts ; Wages, Compensation, and Labor Costs: General ; Single Equation Models; Single Variables: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
• Thema: Labor Contracts ; efficiency wages ; corporatism ; Lohn ; Arbeitsproduktivität ; Effizienzlohn ; Tarifpolitik ; Korporatismus ; Schätzung ; Österreich

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Fuess, Jr. Scott M. ; Millea, Meghan
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2001

Weitere Informationen

• Handle: http://hdl.handle.net/10419/21092
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ