Wage Dispersion and Decentralization of Wage Bargaining

Christian Dahl, Daniel le Maire and Jakob Munch

CREATES Research Papers from Department of Economics and Business Economics, Aarhus University

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 quantiel regression, we also find that wages are more dispersed under firm-level bargaining compared to more centralized wage-setting systems.

Keywords: Wage bargaining; decentralization; wage dispersion (search for similar items in EconPapers)
JEL-codes: C23 J31 J51 (search for similar items in EconPapers)
Pages: 38
Date: 2011-11-30
New Economics Papers: this item is included in nep-lab and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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https://repec.econ.au.dk/repec/creates/rp/11/rp11_48.pdf (application/pdf)

Related works:
Working Paper: Wage Dispersion and Decentralization of Wage Bargaining (2011)
Working Paper: Wage Dispersion and Decentralization of Wage Bargaining (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:aah:create:2011-48

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