Wage formation in Europe
Description
It has brought, for example, full transparency to wage levels in euro-zone countries and regions. Meanwhile, the inclusion of wage trends in the European policy mix has caused another change to the collective bargaining environment in that wage development, rather than remaining an isolated concern, is regarded as a pillar of the macroeconomic stability policy. Finally, wage restraint, necessary at one time to re-establish some key economic balances, seems to have become part of the conventional wisdom. These developments call for a re-examination of the role played by wages in the economy.
Taking into account also the crucial role of wages as one of the most important bases of private consumption, which in turn is the major determinant of economic growth and employment, this study presents an overall view of the situation, and of developments under way. It includes national chapters describing the situation regarding wage formation in each member state of the European Union, as well as a comparative chapter which analyses theories of wage formation, compares the empirical situation of wage formation in the EU, and proposes new paths for strengthening collective bargaining under the euro. In particular, it proposes the establishment of a form of coordination of collective bargaining amongst trade unions in response to the challenges held out to wage formation by introduction of the euro.