Strike Outcomes and Wage Settlements in Spain

26 Pages Posted: 7 Dec 2006

See all articles by Sergi Jimenez-Martin

Sergi Jimenez-Martin

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

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Abstract

This paper analyses collective bargaining using Spanish firm-level data. Central to the analysis are the joint determination of wage and strike outcomes in a dynamic framework and the possibility of separate wage equation for strike and non-strike outcomes. Conditional to strikes taking place, we confirm a negative relationship between strike duration and wage changes in a dynamic context. In this sense, the joint effect of the strike variables is positive for short strikes and negative for long ones (above 20 days). Furthermore, we find selection in wage equations induced by the strike outcome. In this sense, the possibility of wage determination processes being different in strike and non-strike samples is not rejected by the data. In particular, wage dynamics are of opposite sign in both strike and non-strike equations. Finally, we find evidence of a 0.33 percentage points wage change strike premium.

Suggested Citation

Jimenez-Martin, Sergi, Strike Outcomes and Wage Settlements in Spain. Labour, Vol. 20, No. 4, pp. 673-698, December 2006. Available at SSRN: https://ssrn.com/abstract=950087 or http://dx.doi.org/10.1111/j.1467-9914.2006.00360.x

Sergi Jimenez-Martin (Contact Author)

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

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Barcelona, 08005
Spain
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