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Industrial relations reform, firm-level bargaining and nominal wage floors

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  • Giannakopoulos, Nicholas
  • Laliotis, Ioannis

Abstract

We investigate the impact of the 2011 industrial relations reform in Greece that made firms with less than 50 employees eligible to participate to firm-level bargaining. Matching administrative contractual data with longitudinal firm-level data we identify firms affected and not affected by the reform. We find that during the first post-reform year, affected firms with less than 50 employees experienced a 4.8 per cent increase in the probability of firm-level contracting and a 12 per cent drop in wage floors relative to not affected firms. We also report estimates regarding the post-reform employment effect of firm-level bargaining.

Suggested Citation

  • Giannakopoulos, Nicholas & Laliotis, Ioannis, 2019. "Industrial relations reform, firm-level bargaining and nominal wage floors," LSE Research Online Documents on Economics 100446, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:100446
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    Keywords

    firm-level bargaining; wages; reform; Greece;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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