What are the Factors Behind Pay Settlements? Evidence from Spanish and British Data

38 Pages Posted: 3 Nov 2008

See all articles by José Alberto Bayo Moriones

José Alberto Bayo Moriones

Public University of Navarre - Department of Business Administration

Jose E. Galdon-Sanchez

Universidad Publica de Navarra ; IZA

Sara Martinez-de Moretin

affiliation not provided to SSRN

Abstract

This article presents a study of the determinants of pay settlements in a sample of Spanish and British establishments. We find that variables such as establishment size and age, foreign ownership, labour costs, the existence of internal labour markets, a strategic approach to human resource management and pay setting institutions are related to the factors that shape pay adjustments. Moreover, our findings show that there are significant differences in the determinants of pay settlements between Spain and Great Britain. We suggest that the labour market institutions developed in each country influence pay setting decisions.

Keywords: compensation systems, labor market institutions, wage settlements, establishment level data

JEL Classification: J30, J40

Suggested Citation

Bayo Moriones, José Alberto and Galdon-Sanchez, Jose E. and Martinez-de Moretin, Sara, What are the Factors Behind Pay Settlements? Evidence from Spanish and British Data. IZA Discussion Paper No. 3401. Available at SSRN: https://ssrn.com/abstract=1294541 or http://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

José Alberto Bayo Moriones (Contact Author)

Public University of Navarre - Department of Business Administration ( email )

Campus de Arrosadia
31006 Pamplona
Spain
34 948 169 377 (Phone)
34 948 169 404 (Fax)

Jose E. Galdon-Sanchez

Universidad Publica de Navarra ( email )

Department of Economics
Campus de Arrosadia
Pamplona, Navarra 31006
Spain
+34 948 16 9338 (Phone)
+34 948 16 97 21 (Fax)

HOME PAGE: http://www.econ.unavarra.es/~galdon/

IZA

P.O. Box 7240
Bonn, D-53072
Germany

HOME PAGE: http://www.iza.org/en/webcontent/personnel/photos/index_html?key=1494

Sara Martinez-de Moretin

affiliation not provided to SSRN

No Address Available

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