The study looked at how wages change in Hungarian companies from 1996 to 1999. They found that workers with more power tend to get higher pay raises based on the company's ability to pay. Workers in state-owned companies have more bargaining power than those in private companies, especially those owned by foreigners. The study also showed that workers' outside options, like unemployment rates, can affect their bargaining power. Overall, wages in state-owned companies are more stable, while private companies are more responsive to changes in ability to pay.