Wage Adjustment Practices and the Link between Price and Wages: Survey Evidence from Colombian Firms

Ana Iregui, Ligia Alba Melo B. () and María Teresa Ramírez G. ()
Authors registered in the RePEc Author Service: Ligia Melo and Maria Teresa Ramirez-Giraldo

Revista Lecturas de Economía, 2012

Abstract: Resumen: Este artículo utiliza una encuesta a 1.305 firmas para evaluar las prácticas de ajustes salariales de las empresas en el mercado laboral colombiano. Específicamente, se analiza la frecuencia de los incrementos salariales y el vínculo entre los cambios de precios y salarios. Los resultados muestran que los salarios se ajustan anualmente, que los aumentos se concentran alrededor de la inflación observada y que ninguna empresa recortó los salarios. Además, los principales determinantes de dichos ajustes son factores asociados con el desempeno tanto de empresas como de trabajadores. La relación entre los cambios en salarios y precios es más fuerte en sectores donde los costos laborales representan una mayor proporción de los costos totales y en sectores con alta productividad laboral.Abstract: This paper explores firms´ wage adjustment practices in the Colombian formal labor market; specifically, the timing and frequency of wage increases, as well as the link between wage and price changes. We use a survey of 1,305 firms belonging to all economic sectors. The results show that most firms adjust base wages annually, increases were concentrated around observed inflation and none of the firms cut wages. Moreover, factors associated with the performance of firms and workers alike are the main determinants of wage adjustments. The link between wages and price changes is stronger in sectors where labor costs represent a higher share of total costs and in firms operating in sectors with higher labor productivity.

Keywords: incrementos salariales; mercado laboral; encuestas; modelos logit; Colombia (search for similar items in EconPapers)
JEL-codes: C25 D22 J30 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://aprendeenlinea.udea.edu.co/revistas/index.p ... cle/view/12811/11542

Related works:
Journal Article: Wage Adjustment Practices and the Link between Price and Wages: Survey Evidence from Colombian Firms (2012)
Working Paper: Wage Adjustment Practices and the Link between Price and Wages: Survey Evidence from Colombian Firms (2011)
Working Paper: Wage Adjustment Practices and the Link between Price and Wages: Survey Evidence from Colombian Firms (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:col:000174:010147

Access Statistics for this article

More articles in Revista Lecturas de Economía from Universidad de Antioquia, CIE Contact information at EDIRC.
Bibliographic data for series maintained by Universidad de Antioquia. Facultad de Ciencias Economicas. (Laura Maria Posada Arboleda) ().