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Wage Contract Settlements in U.S. Manufacturing

Wayne Vroman

The Review of Economics and Statistics 1984

A bstruactUsing a large scale, longitudinal micro data base this paper tests for the determinants of union wage settlements in manufacturing. Alternative specifications of wage change relationships were tested in data covering the years 1957 to 1980. Among the most important determinants of union wage changes were the expected inflation rate, inflationary surprises (in indexed agreements), incomes policy dummy variables and spillovers from key national agreements. Catch-up effects from lagged inflationary surprises were not important in determining the size of new settlements.

DOI
10.2307/1935990
Volume
66 (4)
Pages
661
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