Implications of wage bargaining systems on regional differentiation in the European Union

Luminita Vochita, George Ciobanu and Andreea Ciobanu

Annals of University of Craiova - Economic Sciences Series, 2008, vol. 2, issue 36, 862-873

Abstract: The theoretical literature has argued that a centralized wage bargaining system may result in low regional wage differentiation and high regional unemployment differentials. The empirical literature has found that centralized wage bargaining leads to lower wage inequality for different skills, industries and population groups, but has not investigated its impact on regional wage differentiation. Empirical evidence in this paper for EU regions suggests that countries with more coordinated wage bargaining systems have lower regional wage differentials, after controlling for regional productivity and unemployment differentials.

Keywords: regional wage differentiation; wage bargaining system; regional unemployment differentials; regional productivity differentials (search for similar items in EconPapers)
JEL-codes: O00 O15 O57 (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:aio:aucsse:v:2:y:2008:i:11:p:862-873

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