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Collective Bargaining and Wage Dispersion in Europe

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  • Carlo Dell'Aringa
  • Laura Pagani

Abstract

The level at which collective bargaining takes place is usually considered important in determining wage levels and wage inequalities. Two different situations are considered: a first in which bargaining is only 'multi-employer', and a second in which it is 'multi-level', in the sense that workers can be covered by both a 'multi-employer' and a 'single-employer' contract at the same time. The purpose of this paper is to analyse the impact of these different institutional settings on pay dispersion. The study is carried out using the European Structure of Earnings Survey, which is a large dataset containing detailed matched employer-employee information for the year 1995. The countries analysed are Italy, Belgium and Spain. The empirical results generally show that wages of workers covered by only a 'multi-employer' contract are no more compressed than those of workers covered by both 'multi-employer' and 'single-employer' contracts. This implies that where workers are not covered by single-employer bargaining, they receive wage supplements paid unilaterally by their employers. Copyright Blackwell Publishing Ltd/London School of Economics 2007.

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Bibliographic Info

Article provided by London School of Economics in its journal British Journal of Industrial Relations.

Volume (Year): 45 (2007)
Issue (Month): 1 (03)
Pages: 29-54

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Handle: RePEc:bla:brjirl:v:45:y:2007:i:1:p:29-54

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Cited by:
  1. Thierry Lallemand & François Rycx, 2007. "Employer Size and the Structure of Wages: A Critical Survey," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(2), pages 75-87.
  2. Dahl, Christian M. & le Maire, Daniel & Munch, Jakob R., 2011. "Wage Dispersion and Decentralization of Wage Bargaining," IZA Discussion Papers 6176, Institute for the Study of Labor (IZA).
  3. Piero, Casadio, 2010. "Contrattazione aziendale integrativa e differenziali salariali territoriali: informazioni dall'indagine sulle imprese della Banca d'Italia," MPRA Paper 29384, University Library of Munich, Germany.
  4. Jirjahn, Uwe & Kraft, Kornelius, 2008. "Teamwork and Intra-Firm Wage Dispersion among Blue-Collar Workers," IZA Discussion Papers 3291, Institute for the Study of Labor (IZA).
  5. Salimata Sissoko, 2011. "Working Paper 03-11 - Niveau de décentralisation de la négociation et structure des salaires," Working Papers 1103, Federal Planning Bureau, Belgium.
  6. Athanasios Vamvakidis, 2008. "Regional Wage Differentiation and Wage Bargaining Systems in the EU," IMF Working Papers 08/43, International Monetary Fund.
  7. García-Serrano, Carlos & Malo, Miguel A., 2009. "The impact of union direct voice on voluntary and involuntary absenteeism," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 372-383, March.
  8. Kolev, Alexandre & Saget, Catherine, 2010. "Are middle-paid jobs in OECD countries disappearing? : An overview," ILO Working Papers 456740, International Labour Organization.
  9. Luminita VOCHITA & George CIOBANU & Andreea CIOBANU, 2008. "Implications of wage bargaining systems on regional differentiation in the European Union," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 2(36), pages 862-873, may.
  10. Fabio Clementi & Michele Giammatteo, 2012. "The labour market and the distribution of income: an empirical analysis for Italy," Working Papers 42-2012, Macerata University, Department of Studies on Economic Development (DiSSE), revised Jun 2012.
  11. Thierry Lallemand & Robert Plasman & François Rycx, 2009. "Wage structure and firm productivity in Belgium," ULB Institutional Repository 2013/8733, ULB -- Universite Libre de Bruxelles.
  12. Casadio Piero, 2010. "Firm level wage bargaining and territorial wage differentials: evidence from the Bank of Italy survey on firms," Politica economica, Società editrice il Mulino, issue 2, pages 241-292.
  13. Athanasios Vamvakidis, 2009. "Regional Wage Differentiation and Wage Bargaining Systems in the European Union," Financial Theory and Practice, Institute of Public Finance, vol. 33(1), pages 73-87.

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