This text addresses the role played by institutions in European wage formation with a focus on EMU and institutional change in Labour Markets. Under the general heading there are three broad but distinct themes. The first emphasises the role of institutions in affecting the dispersion of wages across occupation, age, skill, and industry and employment contract categories. The contributors make clear the profound effect that Euopean instiutions can have in influencing, and in most cases compressing, such pay differentials with consequent imlpications for the employment prospects of certain segments of the labour force. The second theme is the explanation for recent wage moderation in Europe. The contributions under this theme stress the role of developments in the bargaining systems of European countries and the presence of a number of temporary or specific factors, which have helped to bring about pay moderation. The final theme is the extent to which institutions are changing within Europe in the light of EMU and the adoption of new business practices.
Introduction - new features of wage determination and institutions in Europe, Gabriel Fagan et al; is European wage-setting different? evidence from the occupational wages around the world data file, Richard B. Freeman and Remco H. Oostendorp; what determines the reservation wages of unemployed workers? new evidence from German micro data, Eswar Prasad; labour as a buffer - do temporary workers suffer?, Alison L. Booth et al; moving from the external to an internal labour market - job tenure, cycle and wage determination, Leandro Arozamena and Mario Centeno; wage developments in the early years of EMU, Karl Pichelmann; wage formation in the Italian private sector after the 1992-93 income policy agreements, Piero Casadio; a widening scope for non-wage components in collective bargaining in the EU?, Veronique Genre et al; the impact of active labour market policies in Europe, Julian Morgan and Annabelle Mourougane; aggregation and euro area Phillips curves, Silvia Fabiani and Julian Morgan; wage flexibility in Britain - some micro and macro evidence, Mark E. Schweitzer; centralized bargaining and reorganized work - are they compatible?, Assar Lindbeck and Dennis J. Snower.
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