Wages in the Steel Industry: Take the Money and Run?
Article first published online: 17 DEC 2002
1998 The Regents of the University of California
Industrial Relations: A Journal of Economy and Society
Volume 37, Issue 2, pages 153–177, April 1998
How to Cite
Deily, M. E. (1998), Wages in the Steel Industry: Take the Money and Run?. Industrial Relations: A Journal of Economy and Society, 37: 153–177. doi: 10.1111/0019-8676.00080
- Issue published online: 17 DEC 2002
- Article first published online: 17 DEC 2002
Sharp increases occurred in the wages paid by integrated steel firms in the 1970s despite reductions in employment caused by the industry's decline. This article reviews several explanations suggested for this puzzling outcome and evaluates them using information on the size and timing of wage increases, on investment decisions, and on expectations about future inflation and demand growth. Overly optimistic expectations for demand growth and unexpected inflation appear to explain much of the data.