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Pay Developments in Britain and Germany: Collective Bargaining, ‘Benchmarking’, and ‘Mimetic Wages’

[journal article]

Schmidt, Werner; Dworschak, Bernd

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Please use the following Persistent Identifier (PID) to cite this document:http://nbn-resolving.de/urn:nbn:de:0168-ssoar-222665

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Abstract This article examines the impact of national industrial relations institutions on pay movements in Britain and Germany between 1980 and 2000. Pay increases are slightly higher in Britain, despite the breakdown of multi-employer bargaining and agreements in the UK and their persistence in Germany. Evidence shows that pay decisions in Britain are mainly determined by imitation and not by markets. The article suggests that a system of ‘pay benchmarking’ in Britain acts as a substitute for the German ‘sectoral agreement model’ and explains similarities in pay movements.
Free Keywords industrial relations; pay determination; pay developments; collective bargaining; cross-country comparison; United Kingdom; Germany;
Document language English
Publication Year 2006
Page/Pages p. 89-109
Journal European Journal of Industrial Relations, 12 (2006) 1
DOI http://dx.doi.org/10.1177/0959680106061370
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)