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Institutional features of wage bargaining in 23 European countries, the US and Japan

Author Info

Listed author(s):
  • Du Caju, Ph.
  • Gautier, E.
  • Momferatou, D.
  • Ward-Warmedinger, M.

Abstract

This paper presents information on wage bargaining institutions, collected using a standardised questionnaire. Our data provide information from 1995 and 2006, for four sectors of activity and the aggregate economy, considering 23 European countries, plus the US and Japan. Main findings include a high degree of regulation in wage setting in most countries. Although union membership is low in many countries, union coverage is high and almost all countries also have some form of national minimum wage. Most countries negotiate wages on several levels, the sectoral level still being the most dominant, with an increasingly important role for bargaining at the firm level. The average length of collective bargaining agreements is found to lie between one and three years. Most agreements are strongly driven by developments in prices and eleven countries have some form of indexation mechanism which affects wages. Cluster analysis identifies three country groupings of wage-setting institutions.

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File URL: https://publications.banque-france.fr/sites/default/files/medias/documents/working-paper_228_2008.pdf
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Paper provided by Banque de France in its series Working papers with number 228.

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Length: 51 pages
Date of creation: 2008
Handle: RePEc:bfr:banfra:228
Contact details of provider: Postal:
Banque de France 31 Rue Croix des Petits Champs LABOLOG - 49-1404 75049 PARIS

Web page: http://www.banque-france.fr/

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Keywords: Wage Bargaining ; Institutions ; Indexation ; Trade Union Membership; Cluster Analysis;

Other versions of this item:

Find related papers by JEL classification:
  • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
  • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
  • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
  • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy

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  1. Ana Rute Cardoso & Pedro Portugal, 2005. "Contractual Wages and the Wage Cushion under Different Bargaining Settings," Journal of Labor Economics, University of Chicago Press, vol. 23(4), pages 875-902, October.
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  10. Hartog, Joop & Leuven, Edwin & Teulings, Coen, 2002. "Wages and the bargaining regime in a corporatist setting: the Netherlands," European Journal of Political Economy, Elsevier, vol. 18(2), pages 317-331, June.
  11. Francesco Lippi, 1999. "Central Bank Independence, Targets and Credibility," Books, Edward Elgar Publishing, number 1615.
  12. Teulings,Coen & Hartog,Joop, 2008. "Corporatism or Competition?," Cambridge Books, Cambridge University Press, number 9780521049399, September.
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