Wage fixing behaviour of managers in Australia

Judy Rich, J. Teicher

    Research output: Contribution to journalArticlepeer-review


    Researchers have conducted surveys of firms in an attempt to test various theories of wage rigidity. The survey of Australian firms reported in this paper found strong support for the view that hiring and training costs are important reasons why employers do not reduce wages, consistent with the surveys of Blinder and Choi (1990), Bewley (1995, 1999) and Kaufman (1984). All the surveys find pervasive support for the notion of fairness as an explanation for wage rigidity. Qualified support was found for the idea that fear of unemploy- ment motivates worker effort.
    Original languageEnglish
    Pages (from-to)177-195
    Number of pages19
    JournalBritish Journal of Industrial Relations
    Issue number2
    Publication statusPublished - Jun 2002


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