Econometrica: Sep 1971, Volume 39, Issue 5

Determinants of Negotiated Wage Increases: An Empirical Analysis

https://doi.org/0012-9682(197109)39:5<739:DONWIA>2.0.CO;2-5
p. 739-750

David A. Wilton, Gordon R. Sparks

This paper presents an empirical analysis of the determinants of negotiated wage changes using a pooled sample of time series observations for fourteen Canadian manufacturing industries. Data on individual contracts are used in an attempt to allow for the discontinuity of wage adjustments given the predominance of collective bargaining and variable contract length. Using a nonlinear formulation, profit levels, the unemployment rate, the rate of change of prices, and other variables are found to be statistically significant.

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