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Wage and employment effects of a wage norm

2011; Wiley; Volume: 19; Issue: 3 Linguagem: Inglês

10.1111/j.1468-0351.2010.00409.x

1468-0351

Alain De Crombrugghe, Grégory de Walque,

Labor Movements and Unions

Economics of TransitionVolume 19, Issue 3 p. 541-561 Wage and employment effects of a wage norm The Polish transition experience† Alain de Crombrugghe, Alain de Crombrugghe Department of Economics, University of Namur, Rempart de la Vierge 8, B-5000 Namur, Belgium. E-mail: [email protected]Search for more papers by this authorGregory de Walque, Gregory de Walque National Bank of Belgium and University of Namur, Bd. de Berlaimont 14, 1000 Bruxelles. E-mail: [email protected]Search for more papers by this author Alain de Crombrugghe, Alain de Crombrugghe Department of Economics, University of Namur, Rempart de la Vierge 8, B-5000 Namur, Belgium. E-mail: [email protected]Search for more papers by this authorGregory de Walque, Gregory de Walque National Bank of Belgium and University of Namur, Bd. de Berlaimont 14, 1000 Bruxelles. E-mail: [email protected]Search for more papers by this author First published: 24 April 2011 https://doi.org/10.1111/j.1468-0351.2010.00409.x † We are grateful to a referee of this journal for very useful comments, and to Lazslo Antall, Marek Belka, Fabrizio Coricelli, Marek Dabrowski, Robert Deschamps, Laszlo Goerke, Marek Gora, Jennifer Hunt, Kalman Miszei, David Lipton, Gérard Roland, Jacek Rostowski, Joachim Stymne, Eric Toulemonde and seminar participants at the Universities of Louvain (UCL), Leuven (KUL) and Namur (FUNDP) and at the European Economic Association Annual meeting for stimulating discussions. We also thank Marek Belka and Piotr Urbanek for the enterprise data, and Coralie Gevers, Anne-Françoise Pirard and Frederic Mallefait for research assistance. We are entirely responsible for errors and omissions and for the contents of this article. The views expressed are those of the authors and do not necessarily reflect the views of the National Bank of Belgium. Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onEmailFacebookTwitterLinkedInRedditWechat Abstract Most transition countries used tax-supported wage norms in the early 1990s, as a part of their market liberalization programmes. This article analyses how a firm-level tax (or subsidy) on deviations from a pre-set wage norm may promote employment by rotating the labour demand curve perceived by the workers' union around the value of the norm. We derive the conditions under which it yields a positive employment effect. 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