Wage Dispersion and Decentralization of Wage Bargaining

Christian Dahl, Daniel le Maire and Jakob Munch

No 6176, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper studies how decentralization of wage bargaining from sector to firm-level influences wage levels and wage dispersion. We use detailed panel data covering a period of decentralization in the Danish labor market. The decentralization process provides variation in the individual worker's wage-setting system that facilitates identification of the effects of decentralization. We find a wage premium associated with firm-level bargaining relative to sector-level bargaining, and that the return to skills is higher under the more decentralized wage-setting systems. Using quantile regression, we also find that wages are more dispersed under firm-level bargaining compared to more centralized wage-setting systems.

Keywords: wage dispersion; decentralization; wage bargaining (search for similar items in EconPapers)
JEL-codes: C23 J31 J51 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2011-11
New Economics Papers: this item is included in nep-bec, nep-lab and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published in: Journal of Labor Economics, 2013, 31 (3), 501-533

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Related works:
Journal Article: Wage Dispersion and Decentralization of Wage Bargaining (2013)
Working Paper: Wage Dispersion and Decentralization of Wage Bargaining (2011)
Working Paper: Wage Dispersion and Decentralization of Wage Bargaining (2009)
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