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36 p, 369.7 KB Wage setting in the Colombian manufacturing industry / Agudelo, Sonia A. (Universitat Autònoma de Barcelona) ; Sala Lorda, Hèctor (Universitat Autònoma de Barcelona)
We show that wage setting in the Colombian manufacturing industry is not fundamentally driven by labor productivity in contrast to the standard theoretical prediction. On the contrary, internal institutional arrangements – payroll taxation,the minimum wage or the price wedge between manufacturing and consumption prices – together with a higher exposure to international trade – connected to the increasing globalization of the Colombian economy – appear as the crucial drivers. [...]
Bonn Institute for the Study of Labor 2015 (Discussion paper (Institute for the Study of Labor) ; 8945)  

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