Regional Wage Differentiation and Wage Bargaining Systems in the EU
AbstractThe theoretical literature has argued that a centralized wage bargaining system may result in low regional wage differentiation and high regional unemployment differentials. The empirical literature has found that centralized wage bargaining leads to lower wage inequality for different skills, industries and population groups, but has not investigated its impact on regional wage differentiation. Empirical evidence in this paper for EU regions for the period 1980-2000 suggests that countries with more coordinated wage bargaining systems have lower regional wage differentials, after controlling for regional productivity and unemployment differentials.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 08/43.
Date of creation: 01 Feb 2008
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-03-25 (All new papers)
- NEP-GEO-2008-03-25 (Economic Geography)
- NEP-LAB-2008-03-25 (Labour Economics)
- NEP-LTV-2008-03-25 (Unemployment, Inequality & Poverty)
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