Wage Dispersion and Decentralization of Wage Bargaining

Christian Dahl, Daniel le Maire and Jakob Munch

No 09-15, Discussion Papers from University of Copenhagen. Department of Economics

Abstract: This paper studies how decentralization of wage bargaining from sector to firm level influences wage levels and wage dispersion. We use a detailed panel data set covering a period of decentralization in the Danish labor market. The decentralization process provides exogenous variation in the individual worker's wage-setting system that facilitates identification of the effects of decentralization. Consistent with predictions we find that wages are more dispersed under firm-level bargaining compared to more centralized wage-setting systems. However, the differences across wage-setting systems are reduced substantially when controlling for unobserved individual level heterogeneity.

Keywords: Wage bargaining; decentralization; panel data quantile regression (search for similar items in EconPapers)
JEL-codes: C23 J31 J51 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2009-08
New Economics Papers: this item is included in nep-bec and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://www.econ.ku.dk/english/research/publications/wp/dp_2009/0915.pdf/ (application/pdf)

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 (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:kud:kuiedp:0915

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