Template-Type: ReDIF-Article 1.0
Author-Name: Gábor Kézdi
Author-Email: 
Author-Workplace-Name: Central European University
Author-Name: István Kónya
Author-Email: konyai@mnb.hu
Author-Workplace-Name: Magyar Nemzeti Bank (central bank of Hungary)
Title: Wage setting in Hungary: evidence from a firm survey
Abstract: We document results from a survey of wage setting in Hungarian enterprises. The survey was developed and coordinated by the Eurosystem Wage Dynamics Network, and it was administered in 17 European countries; this allows us to put the Hungarian findings in context. The main conclusion from the survey is that while Hungarian firms operate in a quite flexible institutional environment, their wage setting practices are relatively rigid. In its wage setting outcomes, Hungary shares more similarities with Western European countries than with countries in the Central and Eastern European region. The survey provides strong evidence that the observed wage setting behaviour can be explained by internal factors related to employee motivation, perceived fairness, and firms’ desire to maintain a desired wage distribution.
Classification-JEL: J30, J50, J60, C83.
Keywords: wage setting, survey, Hungary, Wage Dynamics Network.
Journal: MNB Bulletin
Pages: 20-26
Volume: 4
Issue: 3
Year: 2009
Month: October
File-URL: http://www.mnb.hu/letoltes/kezdi-konya-2009-okt-en.pdf
File-Format: Application/pdf

Handle: RePEc:mnb:bullet:v:4:y:2009:i:3:p:20-26