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The Impact of Wage Bargaining Regime on Firm-Level Competitiveness and Wage Inequality: The Case of Ireland

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Author Info

  • McGuinness, Seamus

    (ESRI)

  • Kelly, Elish

    (ESRI)

  • O'Connell, Philip J.

    (ESRI)

Abstract

This paper uses a linked employer-employee dataset to analyse the impact of institutional wage bargaining regimes on levels of average labour costs and within firm wage dispersion in private sector companies in Ireland. The results show that while centralised bargaining reduced labour costs within both the indigenous and foreign-owned sectors, the relative advantage was greater among foreign-owned firms. The analysis suggests that there are potentially large competitiveness gains to multinational companies that choose to locate in countries implementing a centralised bargaining system. Furthermore, the results provide additional support to the view that collective bargaining reduces within firm wage inequality.

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Bibliographic Info

Paper provided by Economic and Social Research Institute (ESRI) in its series Papers with number WP266.

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Length: 38 pages
Date of creation: Dec 2008
Date of revision:
Handle: RePEc:esr:wpaper:wp266

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Keywords: Ireland/Labour Costs/Wage Bargaining Regimes/Wage Dispersion;

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References

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Citations

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Cited by:
  1. Sebastian Dellepiane & Niamh Hardiman, 2011. "Governing the Irish Economy: A Triple Crisis," Working Papers 201103, Geary Institute, University College Dublin.
  2. Eoin O'Malley, 2012. "A Survey of Explanations for the Celtic Tiger Boom," The Institute for International Integration Studies Discussion Paper Series iiisdp417, IIIS.
  3. Regan, Aidan, 2013. "The impact of the eurozone crisis on Irish social partnership : a political economy analysis," ILO Working Papers 480595, International Labour Organization.
  4. Kelly, Elish & McGuinness, Seamus & O'Connell, Philip J., 2008. "Benchmarking, Social Partnership and Higher Remuneration: Wage Settling Institutions and the Public-Private Sector Wage Gap in Ireland," Papers WP270, Economic and Social Research Institute (ESRI).
  5. Frank Walsh, 2013. "Labour Market Regulation and Migration in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 44(1), pages 85–102.

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