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Relative Wages under Decentralized and Corporatist Bargaining Systems

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  • Barth, Erling
  • Zweimuller, Josef

Abstract

In studying the relationship between wage inequality and centralization in collective bargaining, the authors distinguish central from local systems of wage determination by assuming that a central union takes the employment effects of negotiated wages into account, whereas unions disregard these effects in decentralized systems. Two different sources of wage differentials are studied separately: (1) heterogeneous workers with different skills and (2) heterogeneous firms with varying levels of economic rent per employee. With respect to skill levels, the impact of centralization is ambiguous, whereas interfirm wage differentials are likely to be lower in corporatist systems. Copyright 1995 by The editors of the Scandinavian Journal of Economics.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.

Volume (Year): 97 (1995)
Issue (Month): 3 (September)
Pages: 369-84

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Handle: RePEc:bla:scandj:v:97:y:1995:i:3:p:369-84

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Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442

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Cited by:
  1. Dittrich, Marcus, 2006. "Welfare Effects of Union Bargaining Centralisation in a Two-Sector Economy," MPRA Paper 11, University Library of Munich, Germany, revised Sep 2006.
  2. Jose Maria Ramos Parreno & Fernando Sanchez Losada, 1999. "The role of unions in an endogenous growth model with human capital," Working Papers in Economics 57, Universitat de Barcelona. Espai de Recerca en Economia.
  3. Nicole Guertzgen, 2009. "Firm Heterogeneity and Wages under Different Bargaining Regimes: Does a Centralised Union Care for Low-Productivity Firms?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 229(2-3), pages 239-253, June.
  4. Felbermayr, Gabriel & Prat, Julien & Schmerer, Hans-Jörg, 2011. "Globalization and labor market outcomes: Wage bargaining, search frictions, and firm heterogeneity," Journal of Economic Theory, Elsevier, vol. 146(1), pages 39-73, January.
  5. René Böheim & Martina Zweimüller, 2009. "The employment of temporary agency workers in the UK – with or against the trade unions?," NRN working papers 2009-21, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  6. Fuest, Clemens & Peichl, Andreas & Siegloch, Sebastian, 2013. "Do higher corporate taxes reduce wages? Micro evidence from Germany," ZEW Discussion Papers 13-039, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  7. Daniel Cardona & Fernando Sanchez Losada, 2003. "Union Power, Minimum Wage Legislation, Endogenous Labor Supplies and Production," Working Papers in Economics 105, Universitat de Barcelona. Espai de Recerca en Economia.
  8. Peichl, Andreas & Fuest, Clemens & Siegloch, Sebastian, 2013. "Wage Incidence of Local Corporate Taxation - Micro Evidence from Germany," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79916, Verein für Socialpolitik / German Economic Association.
  9. Eckel, Carsten & Egger, Hartmut, 2009. "Wage bargaining and multinational firms," Journal of International Economics, Elsevier, vol. 77(2), pages 206-214, April.
  10. Carsten Eckel & Hartmut Egger, 2006. "Wage Bargaining and Multinational Firms in General Equilibrium," CESifo Working Paper Series 1711, CESifo Group Munich.
  11. Arne Heise, 2006. "A Post-Kaleckian, Post-Olsonian Approach to Unemployment and Income Inequality in Modern Varieties of Capitalism," Annals of Economics and Finance, Society for AEF, vol. 7(2), pages 357-383, November.

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