Institutional features of wage bargaining in 23 European countries, the US and Japan.

This paper presents information on wage bargaining institutions, collected using a standardised questionnaire. Our data provide information from 1995 and 2006, for four sectors of activity and the aggregate economy, considering 23 European countries, plus the US and Japan. Main findings include a high degree of regulation in wage setting in most countries. Although union membership is low in many countries, union coverage is high and almost all countries also have some form of national minimum wage. Most countries negotiate wages on several levels, the sectoral level still being the most dominant, with an increasingly important role for bargaining at the firm level. The average length of collective bargaining agreements is found to lie between one and three years. Most agreements are strongly driven by developments in prices and eleven countries have some form of indexation mechanism which affects wages. Cluster analysis identifies three country groupings of wage-setting institutions.Wage Bargaining ; Institutions ; Indexation ; Trade Union Membership, Cluster Analysis

Job insecurity, employability and satisfaction among temporary and permanent employees in post-crisis Europe

Earlier studies established that perceived job insecurity is more strongly related to the experiences of permanent employees, and conversely that perceived employability is more strongly related to the experiences of temporary employees. We challenge these results against the background of the 2008/2009 crisis using samples from the 2010 European Social Survey with employees from Continental and Mediterranean Europe. First, we argue that job insecurity has become a structural phenomenon that associates with temporary and permanent employees’ satisfaction in the same fashion, which found overall support. Second, we argue that employability may have become important for all employees, regardless of contract type, which was largely supported. A cause for concern is that the relationship between perceived job insecurity and satisfaction was comparatively stronger than the relationship between perceived employability and satisfaction. This may suggest that employees have not yet fully embraced ideas about employability as the new form of security

FDI in hot labour markets: The implications of the war for talent

This paper highlights an inherent contradiction that exists within investment promotion activities in rich countries. Since the financial crisis, many inward investment agencies have shifted their activities from job creation per se to seeking to attract investment in high-tech activities. Such knowledge-intensive sectors are engaged in what has become referred to as “the war for talent”, so locations need to understand their value proposition to firms, especially where labour is tight. This paper explores the implications of this, in terms of the impact on employment and earnings of high skilled labour. We show that, because skill shortages already exist in many of these sectors, seeking to attract inward investment in these sectors simply causes the earnings of such workers to be bid up, and employment in the incumbent sector to fall. We highlight the over-riding importance that firms place on the availability of skilled labour when determining locations, and how policies which promote labour market flexibility, particularly through investment in skills to address skill shortages, can significantly mitigate the adverse effects, which tend to be more keenly felt in poorer regions of Europe where skilled labour is in even shorter supply