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Wages and the Bargaining Regime under Multi-level Bargaining: Belgium, Denmark and Spain

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Author Info
Robert Plasman () (DULBEA, Université libre de Bruxelles, Brussels)
Michael Rusinek () (DULBEA, Université libre de Bruxelles, Brussels)
François Rycx () (DULBEA, Université libre de Bruxelles, Brussels, and IZA, Bonn)

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Abstract

Using a unique harmonized matched employer-employee dataset (European Structure of Earnings Survey, 1995), we study the impact of the regime of collective bargaining on wages in the manufacturing sector of three countries that are characterized by a multilevel system of bargaining: Belgium, Denmark and Spain. Our findings show that, compared to multi-employer bargaining, single-employer bargaining has a positive effect both on wage levels and on wage dispersion in Belgium and in Denmark. In Spain, single-employer bargaining also increases wage levels but reduces wage dispersion. Our interpretation is that in Belgium and Denmark, single-employer bargaining is used to adapt pay to the specific needs of the firm while, in Spain, it is mainly used by trade unions in order to compress the wage distribution.

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Publisher Info
Paper provided by Université libre de Bruxelles, Department of Applied Economics (DULBEA) in its series Working Papers DULBEA with number 06-01.RS.

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Length: 25 pages
Date of creation: Jan 2006
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Publication status: Forthcoming in the European Journal of Industrial Relations
Handle: RePEc:dul:wpaper:06-01rs

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Related research
Keywords: Collective bargaining wage structure.

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Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
  2. Edward P. Lazear & Sherwin Rosen, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," NBER Working Papers 0401, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Stewart, Mark B, 1987. "Collective Bargaining Arrangements, Closed Shops and Relative Pay," Economic Journal, Royal Economic Society, vol. 97(385), pages 140-56, March. [Downloadable!] (restricted)
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  6. Richard B. Freeman, 1980. "Unionism and the Dispersion of Wages," NBER Working Papers 0248, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Juan Francisco Canal Domínguez & César Rodríguez Gutiérrez, 2004. "Collective Bargaining and Within-firm Wage Dispersion in Spain," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 42(3), pages 481-506, 09. [Downloadable!] (restricted)
  8. Thomas Lemieux, 2002. "Decomposing changes in wage distributions: a unified approach," Canadian Journal of Economics, Canadian Economics Association, vol. 35(4), pages 646-688, November. [Downloadable!] (restricted)
  9. Hartog, Joop & Leuven, Edwin & Teulings, Coen N, 1997. "Wages and the Bargaining Regime in a Corporatist Setting: The Netherlands," CEPR Discussion Papers 1706, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  10. Dell'Aringa, Carlo & Lucifora, Claudio, 1994. "Collective bargaining and relative earnings in Italy," European Journal of Political Economy, Elsevier, vol. 10(4), pages 727-747, December. [Downloadable!] (restricted)
  11. Carlos Garcia-Serrano & Miguel A. Malo, 2002. "Worker Turnover, Job Turnover and Collective Bargaining in Spain," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 40(1), pages 69-85, 03. [Downloadable!] (restricted)
  12. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June. [Downloadable!] (restricted)
  13. Rycx, François & Plasman, Robert, 2003. "Industry wage differentials and the bargaining regime in a corporatist country," Economic Literature ULB 2013-787, Université libre de Bruxelles, Libraries. [Downloadable!]
  14. Rodriguez-Gutierrez, Cesar, 2001. "Wage dispersion within firms and collective bargaining in Spain," Economics Letters, Elsevier, vol. 72(3), pages 381-386, September. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

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  7. Robert Plasman & François Rycx & Ilan Tojerow, 2007. "Wage Differentials in Belgium: The Role of Worker and Employer Characteristics," Working Papers DULBEA 07-12.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
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  8. Henri Capron & Michele Cincera, 2007. "EU Pre-competitive and Near-the-Market S&T Collaborations," Working Papers DULBEA 07-17.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
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  11. Olga Bourachnikova, 2007. "Weighting Function in the Behavioral Portfolio Theory," Working Papers DULBEA 07-07.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
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