Wage fixing behaviour of managers in Australia

Judy Rich; J. Teicher

doi:10.1111/1467-8543.00228

Wage fixing behaviour of managers in Australia

Judy Rich, J. Teicher

Research output: Contribution to journal › Article › peer-review

Abstract

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 language	English
Pages (from-to)	177-195
Number of pages	19
Journal	British Journal of Industrial Relations
Volume	40
Issue number	2
DOIs	https://doi.org/10.1111/1467-8543.00228
Publication status	Published - Jun 2002

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title = "Wage fixing behaviour of managers in Australia",

abstract = "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.",

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AB - 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.

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Wage fixing behaviour of managers in Australia

Abstract

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