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Wage scales and centralized bargaining - a binding constraint on the wage-setting?

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  • Martin S�derstr�m

Abstract

The wage-setting for Swedish teachers was up and until 1996 characterized by centralized bargaining and wage scales. According to the scales, wages were exclusively determined by teacher type and years in the profession. In 1996, the scale system was replaced by individual wage bargaining. This study uses this change in bargaining structure to examine whether the scale system was a binding constraint on the wage-setting. The results suggest that the scales did impose such a constraint, since the earnings structure changed after the reform. More precisely, entry-wages and earnings dispersion increased.

Suggested Citation

  • Martin S�derstr�m, 2010. "Wage scales and centralized bargaining - a binding constraint on the wage-setting?," Applied Economics Letters, Taylor & Francis Journals, vol. 17(3), pages 247-250, February.
    • Handle: RePEc:taf:apeclt:v:17:y:2010:i:3:p:247-250
    DOI: 10.1080/13504850701720155
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    References listed on IDEAS

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    1. Magnus Gustavsson, 2006. "The evolution of the Swedish wage structure: new evidence for 1992-2001," Applied Economics Letters, Taylor & Francis Journals, vol. 13(5), pages 279-286.
    2. Katz, Lawrence F. & Autor, David H., 1999. "Changes in the wage structure and earnings inequality," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 26, pages 1463-1555, Elsevier.
    3. Lundborg, Per, 2005. "Individual Wage Setting, Efficiency Wages and Productivity in Sweden," Working Paper Series 205, Trade Union Institute for Economic Research.
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