Institutions and wage formation in the new Europe

Abstract:

The papers which comprise this work arose from a workshop entitled 'How are wages determined in Europe', held in December 2001 at the European Central Bank in Frankfurt, Germany. In addition to an introductory chapter by the editors, there are eleven individual contributions.

The first paper addresses the question of whether or not European wage-setting is different, doing so by careful calibration of data from the ILO's data set 'Occupational Wages around the World'. Chapter two examines the effects of unemployment benefits and the minimum wage on the lower end of the wage distribution in Germany. The impact of temporary contracts, including the relative wages of those on temporary and permanent contracts is the subject of the third paper. Chapter four studies the effect of increasing tenure on the relationship between wages and external labour market conditions. The next three chapters focus on the wage moderation seen in some European countries in the early years and those immediately prior to setting up the EMU. Chapter five looks at recent evolution of wages in euro countries, chapter six examines the Italian experience in response to the 1992-93 Income Policy Agreements and chapter seven explores the role of collective bargaining and the increasing experience of non-wage elements such as training, health and safety, life and work balance and working time. Chapter eight addresses the problems arising from the clash between aggregate euro area developments and national developments. Labour market reforms and their impact on wage flexibility in Britain are the focus of chapter nine. The developments in decentralisation and the demands of multitasking are featured in chapter ten, which addresses the question 'Centralised bargaining and reorganised work: are they compatible?' Chapter eleven looks at the growing policy focus on active labour market policies and highlights the policy measures being taken in the European Union.

The book will interest scholars with an interest in labour markets and EMU issues, and also industrial relations specialists with a interest in institutional topics.

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