Wages in the Steel Industry: Take the Money and Run?

25 Pages Posted: 6 May 2004  

Marybeth Deily

Lehigh University - Department of Economics

Abstract

Sharp increases occurred in the wages paid by integrated steel firms in the 1970s despite reductions in employment caused by the industry's decline. This article reviews several explanations suggested for this puzzling outcome and evaluates them using information on the size and timing of wage increases, on investment decisions, and on expectations about future inflation and demand growth. Overly optimistic expectations for demand growth and unexpected inflation appear to explain much of the data.

Suggested Citation

Deily, Marybeth, Wages in the Steel Industry: Take the Money and Run?. Industrial Relations, Vol. 37, pp. 153-177, April 1998. Available at SSRN: https://ssrn.com/abstract=522020

Marybeth Deily (Contact Author)

Lehigh University - Department of Economics ( email )

620 Taylor Street
Bethlehem, PA 18015
United States
610-758-4951 (Phone)
610-758-4677 (Fax)

HOME PAGE: http://www.lehigh.edu/~incbeug/faculty/marybethdeily.html

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