Wage interactions : comparisons or fall-back options? / Jennifer C. Smith Smith, Jennifer C

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Smith, Jennifer C
Appears In
Economic Journal
Wages - Great Britain - Mathematical models.; Collective bargaining -- Economic aspects; Labor economics - Great Britain.
Academic; Trade
The importance of wage comparisons to wage negotiations is determined using data from the UK chemical industry between 1978 and 1989. Wages given by dominant industry players can be used not only as reference wages but also as fall back options in pay negotiations. While the reference wages based on those given by industry leaders are considered as possible wage determinants, they are not reflective of the overall industry wage because only major industry players can afford to provide them. It is concluded that wage comparisons are ruled by "fair" considerations instead of fall back options.
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