Abstract
This paper is devoted to the analysis of the differences in the share of low wage work in six countries. The main differences are related with the set of institutions that influence the regulation of labour markets. It is emphasized the role of collective bargaining, minimum wages, product market regulations and welfare systems.
Highlights
This article presents some of the key findings on the impact of pay setting institutions on the extent of low wage work of studies in the United States and five European countries, namely Denmark, Germany, France, the Netherlands and United Kingdom, initiated and funded by the Russell Sage Foundation
The comparison of the national institutional structures in these countries was supplemented by case studies on specific jobs in five industries in all countries – call centres, food processing, retail outlets, hospitals, and hotels. These case studies were exploring the effects of variations in institutional structures on jobs which were typically low paid in the United States. structures on jobs which were typically low paid in the United
Pay setting in the firm is partly influenced by outside institutions the firm including industry-wide collective bargaining and minimum wages
Summary
This article presents some of the key findings on the impact of pay setting institutions on the extent of low wage work of studies in the United States and five European countries, namely Denmark, Germany, France, the Netherlands and United Kingdom, initiated and funded by the Russell Sage Foundation. Country-specific, long-run, economic structural factors seem to have played little role in explaining international differences in low-wage work. Nor do between-country differences in the labor share of total value-added appear to play a decisive role in explaining the incidence of low-wage work. The analysis of the overall incidence of low pay in the six countries and the results of the case studies in five industries suggest that “pay-setting institutions” play a central role in explaining international differences in low-wage work. We mean collectivebargaining arrangements, minimum wages, and other labor and product market regulations that have an impact on wage determination These institutions with their mutual linkages may form inclusive or exclusive pay setting systems. This article looks, in turn, at the "inclusiveness" of collective bargaining arrangements (section 2) and national minimum wages (section 3), product-market deregulations as opportunities for "exit options" from the generally more inclusive national pay-setting systems (section 4); at issues related to pay setting at the firm level through “social wages” (section 5) and at the trade-off between wage equality and employment (section 6)
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