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

Publicado en

  • Lecturas de Economía


  • 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.

fecha de publicación

  • 2012

Líneas de investigación

  • Colombia
  • Labor Market
  • Logit Models
  • Survey Evidence
  • Wage Increases

Página inicial

  • 17

Última página

  • 53


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