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Pay developments in Britain and Germany : collective barganing, "benchmarking" and "mimetic wages" created by Werner Schmidt and Bernd Dworschak

By: Contributor(s): Material type: TextTextSeries: European journal of industrial relations ; Volume 12, number 1London: sage, 2006Content type:
  • text
Media type:
  • unmediated
Carrier type:
  • volume
ISSN:
  • 09596801
Subject(s): LOC classification:
  • HD8371 EUR
Online resources: 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.
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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.

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