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| Author: | Schmidt, W. Dworschak, B. |
| Title: | Pay developments in Britain and Germany: Collective bargaining, 'Benchmarking', and 'Mimetic Wages' |
| Journal: | European Journal of Industrial Relations
2006 : MAR, VOL. 12:1, p. 89-109 |
| Index terms: | industrial relations collective bargaining benchmarking pay Germany United Kingdom Europe |
| Language: | eng |
| Abstract: | This article examines the impact of national industrial relations institutions on pay movements in Britain and Germany from 1980 to 2000. In the U.K., pay increases are slightly higher, despite the breakdown of multi-employer bargaining and agreements in the U.K. and their persistence in Germany. Evidence shows that pay decisions in Britain are mainly determined by imitation and not by markets. It is suggested that a system of 'pay benchmarking' in Britain acts as a substitute for the German 'sectoral agreement model', explaining similarities in pay movements. |
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