labour costs - Management Articles

Paying more than necessary? The wage cushion in Germany

In many countries, employers usually complain that wages and labour costs are too high. Using a representative establishment data set for Germany, we show that more than 40 percent of plants covered by collective agreements pay wages above the level stipulated in the agreement, which gives rise to a wage cushion between the levels of actual …

Foregin Direct Investment to low-cost coutries

Many manufacturing companies expand their production to low cost countries through different types of foreign direct investments in an attempt to reduce costs. Mexico is one of these low cost countries and is becoming a more and more feasible alternative to Swedish companies. The reasons for this lie in different country specific factors such as …