Decentralized wage bargaining and health

Terhi Maczulskij, Mika Haapanen, Antti Kauhanen and Krista Riukula

Economics & Human Biology, 2024, vol. 55, issue C

Abstract: This study examines the association between decentralized wage bargaining and worker health in Finland. We utilize unique data on collective agreements matched with total population administrative data on mental health disorders and sickness absence for the 2005–2013 period. We find that decentralized wage bargaining is related to mental health among blue-collar workers. Specifically, local wage increase allowances are associated with improved mental health in firms with a high concentration of white-collar employees, whereas this association is reversed in firms where blue-collar workers predominate. No consistent links to sickness absences are observed. Further analyses indicate that higher earnings under local wage agreements may explain the observed improvement in mental health in white-collar intensive firms, whereas decreased employment could partially explain the worsened mental health in blue-collar intensive firms.

Keywords: Blue-collar; Collective agreements; Decentralization; Health; White-collar (search for similar items in EconPapers)
JEL-codes: I14 J31 J52 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ehbiol:v:55:y:2024:i:c:s1570677x24000856

DOI: 10.1016/j.ehb.2024.101433

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